FUNDS MANAGEMENT & FINANCIAL SERVICES Alert: Court overturns decision about use of responsible entity’s ‘natural person’ powers

29 August 2013


In October 2012, we reported on the decision in ASIC v Wellington Capital Ltd and Other (2012) 91 ACSR 514 which involved the demerger of assets from the Premium Income Fund, managed by Wellington Capital Limited.

In that case, the Australian Securities and Investments Commission was unsuccessful in challenging whether Wellington was legally able to distribute shares, as opposed to cash, to the unit holders in PIF. The action was dismissed by a single judge of the Federal Court and ASIC was ordered to pay Wellington’s costs.

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