MacarthurCook Fund Management Limited v TFML Limited [2014] HCA 17

HIGH COURT OF AUSTRALIA

FRENCH CJ, CRENNAN, KIEFEL, BELL AND GAGELER JJ

MACARTHURCOOK FUND MANAGEMENT LIMITED & ANOR APPELLANTS

AND

TFML LIMITED RESPONDENT

MacarthurCook Fund Management Limited v TFML Limited [2014] HCA 17 14 May 2014 S39/2014

ORDER

Appeal allowed. Set aside paragraphs 1 to 4 of the order of the Court of Appeal of the Supreme Court of New South Wales made on 3 September 2013 and, in their place, order that: (a) paragraphs 2 and 3 of the order of the Supreme Court of New South Wales made on 17 August 2012 be set aside and, in lieu thereof, order judgment for MacarthurCook Fund Management Limited and Sandhurst Trustees Limited against TFML Limited in the sum of $10,809,868 plus pre-judgment interest; and (b) the appeal be otherwise dismissed. 3. Respondent to pay the appellants' costs in this Court and at first instance and on appeal to the Court of Appeal. 4. Parties have leave to file written submissions seeking a variation of these orders on or before 4.00 pm on the day 14 days after the publication of these orders.

On appeal from the Supreme Court of New South Wales

Representation

N C Hutley SC with V A Thomas for the appellants (instructed by Ashurst Australia)

B W Walker SC with M A Izzo for the respondent (instructed by Piper Alderman Lawyers)

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CATCHWORDS

MacarthurCook Fund Management Limited v TFML Limited

Corporations – Managed investment schemes – Unlisted unit trust – Members' rights to withdraw from scheme – Where terms of issue of units in trust provided for redemption within stipulated time period – Where units not redeemed within stipulated time period – Whether obligation to redeem units subject to requirements of Pt 5C.6 of Corporations Act 2001 (Cth) – Whether redemption of units constitutes withdrawal from scheme within meaning of Pt 5C.6 of Corporations Act 2001 (Cth).