The Court held that a receiver was justified in proceeding on the basis that financial reports truly and fairly recorded the financial position of a unit trust, notwithstanding that the trust had insufficient cash to pay amounts owed to a unitholder. The crediting of declared distributions to directors' loan accounts validly reflected the manner in which income was distributed, and the trust deed's limitation on trustee liability (clause 6.2(b)) did not invalidate those accounting entries. The Court left open whether clause 6.2(b) would limit a director's right to demand repayment of a loan to the trustee (as distinct from distributions owed to a unitholder), noting the question was not argued and did not need to be decided.
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