ING Funds Management Ltd v ANZ Nominees Ltd

In the case of ING Funds Management Ltd v ANZ Nominees Ltd, the dispute arose from the redemption of units in a managed investment scheme. The plaintiff, ING Funds Management Ltd, sought to redeem certain units in the scheme, but the defendant, ANZ Nominees Ltd, as trustee of the scheme, refused the redemption request. The matter was heard in the Federal Court of Australia. The central issue before the court was whether the holders of the units were entitled to have their units redeemed despite the trust being terminated after the redemption request was made and before the redemption process was completed. Additionally, the court had to determine whether the holders of the relevant units participated with other holders in the termination of the trust.

The court examined the nature and mechanics of the redemption of units within the context of managed investments. It considered whether the redemption process was dependent on the continued existence of the trust or if the redemption rights were fixed at the time the request was made. The court held that the redemption rights were fixed upon the making of the request, and thus, the termination of the trust did not affect the entitlement of the unit holders to have their units redeemed. The court also found that the holders of the relevant units did not participate with other holders in the termination of the trust, which further supported their entitlement to redemption.

Consequently, the court ruled in favour of the plaintiff, ING Funds Management Ltd, and determined that the unit holders were entitled to have their units redeemed despite the intervening termination of the trust. The Federal Court of Australia ordered ANZ Nominees Ltd, as trustee, to complete the redemption of the relevant units as requested by the plaintiff. This decision clarified the rights of unit holders in managed investment schemes regarding redemption processes and the impact of trust termination on those rights.