City Pacific Limited, in the matter of City Pacific Income Fund [2011] FCA 926

City Pacific Limited, in the matter of City Pacific Income Fund [2011] FCA 926

It is appropriate for the Court to direct, pursuant to s 601NF(2) of the Corporations Act 2001 (Cth), that the liquidators make an in specie distribution of the units held by the Income Fund in the Mortgage Fund and Litigation Recovery Rights Units, and to empower the liquidators to act as attorney and agent for unit holders to effect the transfer, as this serves the best interests of unit holders and does not prejudice them or third parties.

Jurisdiction
Australia
Judgment Date
22 July 2011
Procedural Posture
Application for Directions in Liquidation / Judgment and Orders
Outcome
Orders made granting the liquidators power to distribute units in specie and to act as attorney and agent for unit holders; costs to be paid in the winding up.
Legal Topics
['winding Up of Managed Investment Schemes' 'distribution of Assets in Specie' 'powers of Liquidators']
['corporations Law' 'insolvency'] ['winding Up of Managed Investment Schemes' 'distribution of Assets in Specie' 'powers of Liquidators']

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Procedural Posture

Application for Directions in Liquidation / Judgment and Orders

Legal Issues

  1. 1 ['Whether the liquidators of the City Pacific Income Fund should be directed to make an in specie distribution of units in the Pacific First Mortgage Fund and Litigation Recovery Rights Units to unit holders.' 'Whether the liquidators should have the power to act as attorney and agent to facilitate the transfer of units to unit holders.']

Ratio Decidendi

It is appropriate for the Court to direct, pursuant to s 601NF(2) of the Corporations Act 2001 (Cth), that the liquidators make an in specie distribution of the units held by the Income Fund in the Mortgage Fund and Litigation Recovery Rights Units, and to empower the liquidators to act as attorney and agent for unit holders to effect the transfer, as this serves the best interests of unit holders and does not prejudice them or third parties.

Court Disposition

Orders made granting the liquidators power to distribute units in specie and to act as attorney and agent for unit holders; costs to be paid in the winding up.

Orders

  • ['The joint liquidators to make an in specie distribution of the Pacific First Mortgage Fund ordinary units to City Pacific Income Fund unit holders in proportion to their holdings.' 'The joint liquidators to make an in specie distribution of the Pacific First Mortgage Fund Litigation Recovery Rights Units to City...