This article is from the Australian Property Journal archive
DISGRUNTLED investors in the Premium Income Fund have scored a small victory against the manager Wellington Capital.
Following a Federal Court injunction application from PIF Action Group against Jenny Hutson’s Wellington, the company has agreed to suspend any further action in relation to a planned rights issue until the hearing of the matter.
PIFAG had commenced legal action against Wellington, seeking an injunction to cancel units in the Premium Income Fund issued via a recent capital raising, reverse changes to the constitution and restrain Wellington from issuing units pursuant to a rights issue, which had come about at the same time as the capital raising.
The rights issue was seen as against unitholders interests as it effectively forced them to take up the issue if they did not wish to have their unitholding diluted.
A hearing is set for Tuesday 12 June at 12pm. Hutson is expected to be called to give evidence at this hearing.
PIF Action Group has also agreed to delay its upcoming unitholders meeting (scheduled for 16 June) for one week (until 23 June).
“We are very pleased at the outcome of today’s hearing. We believe the Court has recognised the complexity of the situation and also that the managers of the funds are answerable to the investors. Responsible Entities are holding investors’ asset in trusts and must treat them as such,” PIFAG vice president Charles Hodges said.
Australian Property Journal
