A fight has broken out between listed investment company HFA Accelerator Plus and its manager, HFA Asset Management.
HFA Asset Management has threatened legal action against HFA Accelerator Plus if the latter does not remove the letters ‘HFA’ from its name.
The two groups have been in discussions about a possible termination or restructure of their management agreement, according to a statement by HFA Accelerator Plus to the Australian Securities Exchange (ASX). The groups are in the midst of a dispute over management fees, and now over the use of the HFA company name.
HFA Accelerator Plus said it had received a written request from HFA Asset Management regarding the removal of ‘HFA’ from its name. But Accelerator Plus argues it must only request a change of name from shareholders if the management agreement is terminated, or if the manager “reasonably requests”.
“The company does not consider that the manager has reasonably requested a change of name,” the HFA Accelerator Plus statement said.
According to that company’s account of events, the two companies had discussions last Friday night that HFA Accelerator Plus directors believed represented an in-principle agreement about the restructure or termination of the management agreement. Formal documentation was to be signed on Monday morning.
But Accelerator Plus said “despite the best efforts of the company and its advisers to sign a binding agreement from last Friday night until this morning, the manager has not been able to agree to the terms”.
HFA Asset Management has warned it will take legal action to “enforce its rights under the management agreement and its trademark rights”. But HFA Accelerator Plus argues it is in full compliance with the management agreement and has not breached any trademark rights of the manager.
“If the manager institutes legal proceedings, the company will defend them,” the statement said.
