Gilmore Finance Pty Ltd v Aesthete Pty Ltd atf the Real Money Unit Trust (No 2)

Gilmore Finance Pty Ltd sought relief against Aesthete Pty Ltd, which was the trustee of the Real Money Unit Trust. The dispute concerned the investment in two properties in Western Sydney through the establishment of trusts. Gilmore Finance alleged that it was misled by representations made concerning the level of investment by other parties. Despite discovering the true level of investment by other parties, Gilmore Finance continued and increased its investment. The court was required to determine whether the trustees, through their director and alleged agent, made any misleading or deceptive representations regarding the level of investment by other parties. Additionally, the court had to consider whether there were failures to make required contributions, issuance of units at a discount, transactions entered without authority, and whether proper accounting records were maintained. The court also needed to decide if the trustees should be removed.

The court examined the evidence and found that there were indeed misleading representations made by the trustees concerning the level of investment by other parties. The trustees had overstated the amount of investment by other parties to induce further investment from Gilmore Finance. The court also found that there were failures to make required contributions, units were issued at a discount, transactions were entered without authority, and proper accounting records were not maintained. As a result, the court concluded that the trustees should be removed from their positions. The court's decision provided relief to Gilmore Finance and protected the interests of the unitholders in the Real Money Unit Trust.