Australian Unity wins judgement against David Tweed
The Federal Court has found in favour of Australian Unity after David Tweed's Direct Share Purchasing Corporation (DSPC) took an action seeking to force it to register a transfer of units in one of its mortgage trusts, according to AUI.
DSPC took action against Australian Unity despite the fact that the unit holder had already disputed the transfer, AUI stated.
According to AUI, Justice Dodds-Streeton awarded Australian Unity costs against DSPC, and said there were strong indications, if not certainty, of AUI's success had the matter gone to trial.
Justice Dodds-Streeton also said AUI as a responsible entity acted reasonably in requiring further investigation before registering the transfer in the circumstances, according to AUI.
AUI chief executive David Bryant said the judgment confirmed the ability of managers to protect the interests of investors who have accepted unsolicited offers for their units, sometimes at a fraction of their true worth, where the manager cannot satisfy itself that the transactions were valid.
"There is always some satisfaction in being vindicated in legal matters, but this judgment is particularly satisfying," he said.
"We believe that investors who don't need immediate access to capital are unlikely to benefit from selling their units at heavily discounted prices. We would always advise investors who receive unsolicited offers to call their financial adviser or our investor services team for more information before they take any action," Bryant said.
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