Re QSuper Board

The QSuper Board, the body corporate board created by the Superannuation (State Public Sector) Act 1990 (Qld), sought advice from the court on whether it was justified in consenting to an amendment of the Superannuation (State Public Sector) Deed 1990 (Qld). The proposed amendment would allow the board to remunerate itself from the trust fund to create a contingency fund to pay fines, penalties, and similar liabilities arising from new legislation. The QSuper Board administered a scheme established by the deed for the provision of superannuation benefits from a fund and acted as the trustee for the fund. The board owed covenants to act in the best financial interests of its beneficiaries and prioritise those beneficiaries’ interests over others in the event of a conflict. Due to amendments to relevant legislation, the breach of trustee covenants attracted increased civil penalties under the Superannuation Industry (Supervision) Act 1993 (Cth). The same reforms prohibited the trustees from obtaining an indemnity or exemption from such liability from the trust fund.

The court was required to decide whether the QSuper Board was justified in consenting to the proposed amendment, whether wider notification of members was required, and whether documents should be sealed on the court file or otherwise subject to redactions. The court found that the QSuper Board was justified in consenting to the proposed amendment. The court also found that wider notification of members was not required. The court further found that certain documents should be sealed on the court file and subject to redactions.

The court reasoned that the QSuper Board had a power vested in it by the QSuper Act to consent to the proposed amendment. The amendment was in respect of the management of trust property, namely the QSuper Fund. The court found that the QSuper Board was justified in consenting to the proposed amendment because it was in the best financial interests of its beneficiaries. The court found that wider notification of members was not required because it would be impractical and costly. The court found that certain documents should be sealed on the court file and subject to redactions to protect commercially sensitive information and legal advice.

The court ordered that the QSuper Board was justified in consenting to the proposed amendment to the Superannuation (State Public Sector) Deed 1990 (Qld). The court further ordered that certain documents be sealed on the court file and subject to redactions. The court also ordered that the QSuper Board’s costs of this application be paid or reimbursed out of the assets of the fund administered under the Deed on an indemnity basis.