Sando Australia Pty Limited v Australian Securities and Investment Commission

In the case of Sando Australia Pty Limited v Australian Securities and Investment Commission, the dispute centred around the deregistration of a company that had been acting as a trustee for certain mortgages and the subsequent appointment of a new trustee to manage those mortgages. The matter was heard in the Supreme Court of New South Wales. The Australian Securities and Investment Commission (ASIC) sought an order to vest the mortgages held by the former trustee into a new trustee, pursuant to section 71 of the Trustee Act 1925 (NSW).

The primary legal issues the court had to address were whether a new trustee should be appointed under section 70 of the Trustee Act 1925 (NSW) and whether a vesting order should be made in respect of the mortgages held by the former trustee. The court considered the implications of the deregistration of the former trustee and the need for continuity in the management of the trust property.

The court found that a new trustee should indeed be appointed to manage the trust property in question. It was held that the deregistration of the former trustee did not automatically lead to the termination of the trust, but rather necessitated the appointment of a new trustee to ensure the trust property was properly managed. The court granted the vesting order sought by ASIC, transferring the mortgages to the new trustee. The court did not find it necessary to address the question of reinstating the deregistered company as the new trustee had been appointed and the property vested in that new trustee.