Overview of the Dispute
A corporate trustee managing a unit trust encountered a significant director dispute regarding the ownership and management of a commercial property. The disagreement among directors and unit holders posed a threat to the trust’s stability and future operations.
Legal Approach
To address this high-stakes director dispute, Boss Lawyers filed proceedings in the Supreme Court, seeking relief that included the winding up of the corporate trustee and a forced sale of the property. This strategic legal intervention was designed to protect the interests of the majority directors while compelling a resolution.
Outcome
The commercial property was sold to the dissenting director at a price above market value. This resolution ensured a favorable exit for the two remaining directors, protecting their financial interests and avoiding the uncertainties of prolonged litigation.
Key Takeaway for Directors
Director disputes within unit trusts can have far-reaching implications. Strategic legal action and expert negotiation can lead to outcomes that safeguard directors’ financial and business interests.
