The appellants appealed a trial judge's finding that the deceased's surviving husband was the beneficial owner of certain corporate shares, despite the deceased's estate being the legal owner.
The appellants argued this required a finding of fraud or an express trust.
The Court of Appeal dismissed the appeal, holding that under the Business Corporations Act, beneficial ownership is not limited to ownership through a formal trustee and can exist without fraud.
The court found the deceased was implicitly a bare trustee for her husband, who had absolute control of the shares.
The court also rejected arguments that the action was barred by the Trustee Act limitation period, as no personal wrong was alleged against the deceased.