The applicant corporation, undergoing liquidation, brought a motion for directions regarding the distribution of assets attributable to shareholders whose whereabouts were unknown.
The applicant proposed transferring the undistributed funds to a related cultural organization to hold in trust, or alternatively to the Public Guardian and Trustee.
The Public Guardian and Trustee opposed the proposal and argued that the funds should be delivered pursuant to s. 268(1) of the Corporations Act.
The court held that the statutory scheme under the Corporations Act operates as the default mechanism for handling distributions to unlocated shareholders and maximizes their opportunity to claim their entitlements.
The court directed that the funds be delivered to the Public Guardian and Trustee to be held in trust in accordance with the statutory provisions.
