Perhaps this is why WELLINGTON CAPITAL LTD is appealing to the...

Perhaps this is why WELLINGTON CAPITAL LTD is appealing to the High Court NOR? As if any PIF unitholder is going to consent to paying WCL's costs for breaching the constituion!! I imagine PIF unitholders would also be questioning other costs already incurred against our Fund by WCL in relation to the whole ARL deal and whether we are entitled to reimbursement?

NEWS > INVESTMENT
Wellington forced to pay ASIC's cost of appeal
Friday, 12 July 2013 11:25am
By Laura Millan | In Investment

Wellington Capital will be forced to cover the costs incurred by the Australian Securities and Investments Commission (ASIC) after the regulator brought legal proceedings against the responsible entity of the Premium Income Fund (PIF).

The cost of the proceedings is estimated to be between $80,000 and $100,000, an ASIC source told Financial Standard.

ASIC started legal proceedings against Wellington in September 2012, after Wellington distributed PIF shares to Asset Resolution Limited (ARL) without the consent of PIF unit holders.

The Federal Court acquitted Wellington at first, but it ruled that the distribution of shares was invalid after ASIC appealed.

Wellington will now have to pay ASIC the cost of the legal proceedings despite the fact that the PIF constitution gives it the right to indemnification.



"Unless Wellington obtains the consent of the unit holders, it will not be entitled to be indemnified," the court ruling says.

ARL acquired $90.75 million in PIF assets and Wellington acquired ARL shares in return. As a result, each PIF unit holder became a shareholder in ARL, but Wellington did not consult nor obtained consent of PIF unit holders to do the transaction.