perplexing, page-7

The only way I can see that PIF can grab our unsold assets back off ARL is if the transfer of assets from PIF to ARL was conditional on the ARL shares being subsequently transferred to unit holders. Nothing I've read suggests this is the case.

The orders of the Federal court (first instance and appeal) only related to the in specie transfer of ARL shares out of the fund and into the names of share holders. I.e. the ARL shares - PIF unit swap.

Here's the link to the FCAFC decision Gardie:

http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2013/2013fcafc0052


The link to the primary decision by Jagot J follows. Probably only need to read the Orders and paras 1 & 2 under the heading 'Reasons For Judgement'. http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2012/2012fca1140


The FCAFC orders read:

THE COURT ORDERS THAT:
1. The appeal be allowed.

2. The orders made by Jagot J on 17 October 2012 be set aside and orders 3 and 4 below be made in lieu thereof.

THE COURT DECLARES THAT:

3. The in specie transfer of the shares in Asset Resolution Limited (Shares) from Wellington Capital Limited (Wellington) as Responsible Entity of the Premium Income Fund (Fund) to the unit holders of the Fund was beyond the power of Wellington under the constitution of the Fund.

4. By making an in specie transfer of the Shares to the unit holders of the Fund, Wellington did not operate the Fund and perform the functions conferred on it by the Fund’s constitution, and contravened s 601FB(1) of the Corporations Act 2001 (Cth).