Kathleen Investments (Australia) Ltd v Australian Atomic Energy Commission

[2005] WASC 154

Supreme Court of Western Australia

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Equity
2. › Fiduciary duties
3. › Scope of fiduciary obligation
4. › Whether fiduciary duty extends beyond defined area of conduct
5. › Whether contractual relationship gives rise to fiduciary obligations wider than contractual terms
6. › Whether unit holders in trust owe fiduciary duties to each other
1. Equity
2. › Fiduciary duties
3. › Breach of fiduciary duty
4. › Whether procuring transfer of third party's units constituted breach
5. › Whether acknowledgement in deed of beneficial interest sufficient to create fiduciary duty
1. Equity
2. › Trusts
3. › Beneficial interest
4. › Whether recital in deed executed by some parties creates beneficial interest in units held by non-party to deed
5. › Whether acknowledgement of beneficial interest sufficient to create such interest
1. Equity
2. › Accessory liability
3. › Aiding and abetting breach of fiduciary duty
4. › Whether third party who received transferred units with knowledge of deed aided and abetted breach

Quick Take

Fiduciary duties arising from a deed between unit holders in a trust are confined to the exercise of rights and powers attaching to the parties' own units, shares and directorships, and do not extend to units held by third parties not party to the deed. A recital in a deed that parties hold units for one another does not of itself create a beneficial interest in units held by a non-party to the deed. An acknowledgement of a beneficial interest is not sufficient to create such an interest. The court has equitable jurisdiction to rectify a trust register of unit holders, but will only do so to give effect to an established legal or equitable right.