Moller v Roy

The High Court of Australia considered a dispute between Moller and Roy concerning the interpretation of a will. The primary issue before the Court was whether a specific bequest of shares in a company, which had undergone a share split prior to the testator's death, should be construed as referring to the original number of shares or the increased number of shares resulting from the split.

The Court was required to determine the testator's intention regarding the bequest of shares in the context of a subsequent alteration to the company's capital structure. Specifically, the legal question was whether the bequest adeemed, in whole or in part, due to the share split, or if the beneficiary was entitled to the shares as they existed at the time of the testator's death.

The High Court held that the bequest should be interpreted as referring to the shares as they existed at the time of the testator's death. The Court reasoned that the testator's intention was to bequeath their holding in the company, and the share split merely altered the form of that holding without changing its substance. The principle applied was that a specific legacy of shares is not adeemed by a subsequent alteration in the number of shares held, provided the testator's interest in the company remains substantially the same. The Court found that the testator's intention was to give the entirety of their shareholding in the company, whatever its form might be at the time of death.