Re GARDA Capital

In the case of Re GARDA Capital, the applicant, GARDA Capital Limited, sought approval from the court for a proposed scheme of arrangement between itself and its members, as well as an order that it was justified in proceeding on the basis that amending the constitution of its management investment scheme to give effect to the proposed trust scheme would be within its powers of alteration. The application was made pursuant to section 411(4)(b) of the Corporations Act 2001 (Cth) and section 96 of the Trusts Act 1973 (Qld). The legal issues that the court had to decide included whether the proposed scheme of arrangement should be approved and whether the applicant was justified in proceeding with the proposed trust scheme.

The court found that all requirements for court approval of the scheme of arrangement had been established, including the fairness and reasonableness of the scheme to the members and creditors of the applicant, as well as the solvency of the applicant. The court also found that the affidavits provided in support of the application were sufficient to satisfy the requirement of a written statement of facts under section 96 of the Trusts Act 1973 (Qld). The court was satisfied that the proposed trust scheme would be within the powers of alteration of the applicant’s constitution and that the applicant was justified in proceeding with the proposed trust scheme.

The court approved the proposed scheme of arrangement and granted the applicant the relief sought in the application. The court found that the proposed scheme of arrangement was fair and reasonable to the members and creditors of the applicant and that the applicant was solvent. The court also found that the applicant was justified in proceeding with the proposed trust scheme and that the affidavits provided in support of the application were sufficient to satisfy the requirement of a written statement of facts under section 96 of the Trusts Act 1973 (Qld). The court approved the proposed trust scheme and granted the applicant the relief sought in the application.