New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Distribution of deficient mixed fund

Legal area

Court

26 Oct 2021

LOO v QUINLAN AND KELLY (IN THEIR CAPACITY AS LIQUIDATORS) [2021] NZCA 561

Citation

[2021] NZCA 561
Court

Court of Appeal

The Court held the administration date (27 November 2018) is the appropriate valuation date because investor account positions were bookkeeping fictions lacking proprietary title, investors held equitable charges in a single deficient mixed fund, increases in value enured to all beneficiaries proportionately, the liquidators gave no binding assurance to value at a later date, and permitting positions to remain open did not alter the legal entitlements.
19 May 2021

HALIFAX NEW ZEALAND LTD v LOO [2021] NZHC 1113

Citation

[2021] NZHC 1113
Court

High Court

The Court held on the evidence that assets and client funds across Halifax AU and Halifax NZ were commingled and constituted a single deficient mixed fund; tracing was impracticable for most investors so pooling and a pari passu distribution of the pooled trust assets is appropriate; exceptions apply where holdings are demonstrably untainted (Category 3 and certain Category 5 clients) which may be transferred to claimants on proof and payment of processing fees; the appropriate date for quantification of entitlements is the New Zealand administration date of 27 November 2018; post-appointment…