In the matter of Allco Securities Pty Limited

The case of Allco Securities Pty Limited involved a dispute regarding the creation of a trust. The company, Allco Securities, had acquired a substantial parcel of shares and was registered as the holder. The dispute centred around whether Allco Securities held the shares as a nominee for members of an investment syndicate. The evidence presented indicated that the company had indeed acquired and held the shares on behalf of the syndicate members, with dividends being passed through to them. Furthermore, there was evidence of the proportions in which the shares were held for the syndicate members' accounts.

The legal issues before the court were whether a trust had been established and whether the lack of a written agreement signed by the company constituted a barrier to the existence of the trust. The court had to determine if the evidence of the oral agreement and the conduct of the parties was sufficient to establish the trust. Additionally, the court had to consider whether the statutory requirement for a trust to be in writing was applicable in the circumstances presented.

The court held that the evidence was sufficient to establish the existence of a trust. The court found that the oral agreement and the conduct of the parties demonstrated the intention to create a trust and the holding of shares for the benefit of the syndicate members. The court further determined that the statutory requirement for a written agreement did not apply in this situation as the nature of the transaction and the evidence presented were sufficient to establish the trust. Consequently, the court upheld the existence of the trust and ruled in favour of the syndicate members.

The final orders of the court recognised the trust created by Allco Securities and confirmed the syndicate members' beneficial interests in the shares held by the company. The court directed that the dividends and other benefits associated with the shares be distributed in accordance with the established proportions held for the syndicate members.