Trade in Fortescue Metals Group shares has been halted ahead of a High Court decision that could put Andrew Forrest’s position as chairman of the company in doubt.

In a brief statement, Fortescue said it had requested a trading halt for its shares ahead of an announcement by the company.

Mr Forrest and iron ore miner Fortescue have appealed a 2011 Federal Court decision that he and the company misled investors in 2004 by misrepresenting the nature of agreements with three Chinese entities.

The High Court is scheduled to hand down its judgment in the appeal at 1015 AEST on Tuesday.

Mr Forrest could face disqualification as a company director if the appeal is dismissed.

Fortescue struck framework agreements with the three state-owned Chinese companies for the building and transfer of a rail line and port in the Pilbara in Western Australia.

The Australian Securities and Investment Commission (ASIC) began proceedings six years ago against Mr Forrest and Fortescue alleging he misrepresented the accords.

The corporate watchdog lost a Federal Court case in 2009 but successfully appealed that decision last year.