The High Court of Australia has found that power to make ‘in specie’ distributions was not conferred by universal or plenary power clauses commonly seen in the Australian market.  The case serves as a reminder to Responsible Entities of managed investment schemes to ensure that the actions they take are authorised by the constitution of the scheme and particularly, as a warning that specific constitutional power may be needed to enable in specie distributions to be made.

For further details, see the G+T Client Alert issued on 7 November 2014.