Basis Capital Funds Management Ltd v BT Portfolio Services Ltd

In the Supreme Court of New South Wales, Basis Capital Funds Management Ltd sought to appoint BT Portfolio Services Ltd as representatives of investors in certain managed investment schemes for proceedings regarding the investors' entitlements under the schemes. The application was opposed by BT Portfolio Services Ltd, who argued that their appointment as representatives would not be expedient or cost-effective. The court had to determine whether the appointment of BT Portfolio Services Ltd as representatives would be in the interests of justice, particularly whether such an appointment would be expedient and save expense.

The court considered several factors relevant to the exercise of its discretion under rule 7.6 of the Uniform Civil Procedure Rules 2005 (NSW). These factors included the number of investors, the complexity of the issues, the nature of the dispute, and the likelihood of the proposed representatives efficiently and effectively managing the proceedings. The court found that appointing BT Portfolio Services Ltd as representatives would not be expedient or save expense due to the number of investors involved, the complexity of the issues, and the likelihood that the representatives would be able to manage the proceedings efficiently and effectively.

After considering all relevant factors, the court decided that appointing BT Portfolio Services Ltd as representatives would not be in the interests of justice. The court held that the determinative factor was whether the appointment would be expedient and save expense, and in this case, it found that it would not. The application was therefore dismissed.

The court did not make any orders regarding the appointment of representatives for the investors in the managed investment schemes. The parties were directed to continue to pursue their respective positions in the proceedings without the appointment of representatives.