Latest from PIFAG:http://www.investorsactiongroup.com.au/?p=456...

Latest from PIFAG:

http://www.investorsactiongroup.com.au/?p=456


ASIC ACTION AGAINST WELLINGTON MAY SET A PRECEDENT



June 24, 2013


ASIC, at end of May 2013, had a Full Federal Court action win against Wellington Capital in relation to Wellington not having the power to make the ín specie distribution of [ARL] shares, as opposed to cash, to unit holders in the PIF and that Wellington had acted contrary to the PIF Constitution in doing so.

See ASIC link: http://www.asic.gov.au/asic/asic.nsf/byHeadline/13-127MR%20Wellington%20Capital%20distribution%20to%20unit%20holders%20found%20to%20be%20invalid

As a consequence of the above, other responsible entity managers of trust funds such as the PIF [who have made similar share distributions as in the PIF-ARL example], may now also be considered to have acted in breach of trust.

See attachment: AFR article 15 June 2013

Wellington previously advised [29 May 2013] that it would seek leave to appeal to the High Court over the above Full Federal Court decision. To date the PIF AG is not aware that this appeal has been officially lodged.

See PIF link: http://www.wellcap.com.au/assets/pif/updates/2013/021727051.pdf