Can someone with some legal nouse please advise on the meaning from the Judgement (See below) - specifically is the amount at Point 5 supposed to be an alternative to the amount (yet to be calculated) in Point 2? Appreciate advice.
Conclusions on relief
1. For reasons set out above, Murchison and Winterfall are liable to account to Chameleon for the profits obtained by them through the breaches of duty to which I have referred in relation to the Cadetta Transaction and the misapplication of the cheques.
2. The effect of this is that there will be an order for Murchison and Winterfall to account for the income received by them as a consequence of the investment of Chameleon?s funds of $277,840 in the Iron Jack Project from 28 July 2004 to date.
3. I have power under s 54A the Federal Court of Australia Act 1976 (Cth) to appoint a referee to carry out the taking of accounts and my strong preliminary view is that 4. I would so order.
Mr Grimaldi, as the perpetrator of the breaches, is liable to account for the profits obtained by him through the investment of those funds.
Mr Grimaldi is also liable to account to Chameleon for the 10 million shares in Murchison obtained by Pinnacle on completion of the reverse takeover of Winterfall by Murchison.
The profits in respect of those shares are to be assessed at the prices quoted for Murchison shares on the ASX at the date of judgment unless it be shown that Pinnacle or Mr Grimaldi or his nominees disposed of the shares at an earlier date. In that event, the profits are to be determined by reference to the sale price of those shares.
5. At Chameleon?s election, Murchison, Mr Grimaldi and Winterfall are liable for equitable compensation in respect of the sum of $152,750 from 28 July 2004 to date at mercantile rates of interest, compounded on monthly rests.
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