Abacus Funds Management Ltd [2006] NSWSC 80

Abacus Funds Management Ltd [2006] NSWSC 80

Barriers arising from Gambotto principles do not prevent the court from giving judicial advice, as the application of these principles to unit trusts is questionable and the compulsory sale is justified to comply with foreign regulatory regimes. The overwhelming approval by affected persons further supports granting...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
20 February 2006
Procedural Posture
Application for Judicial Advice / Post Meeting, Second Application for Judicial Advice
Outcome
Judicial advice given; plaintiff justified in acting on resolutions and implementing proposal.
Legal Topics
['managed Investment Schemes' 'stapled Securities' 'compulsory Sale' 'judicial Advice' 'foreign Regulatory Regimes']
['corporations' 'trusts'] ['managed Investment Schemes' 'stapled Securities' 'compulsory Sale' 'judicial Advice' 'foreign Regulatory Regimes']

Source-derived case record

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Procedural Posture

Application for Judicial Advice / Post Meeting, Second Application for Judicial Advice

Legal Issues

  1. 1 ['Whether Gambotto principles apply to compulsory sale of stapled securities held by foreign holders under a managed investment scheme' 'Whether plaintiff is justified in implementing the proposal as approved by beneficiaries and members']

Ratio Decidendi

Barriers arising from Gambotto principles do not prevent the court from giving judicial advice, as the application of these principles to unit trusts is questionable and the compulsory sale is justified to comply with foreign regulatory regimes. The overwhelming approval by affected persons further supports granting judicial advice.

Court Disposition

Judicial advice given; plaintiff justified in acting on resolutions and implementing proposal.

Orders

  • ['Plaintiff is justified in acting on resolutions of beneficiaries and company members and implementing the proposal.']