Stewart & Ors v Ackland

The High Court of Australia considered an appeal concerning the interpretation of a will. The appellants, the executors of the estate of the late Mr. Stewart, sought to appeal a decision of the Queensland Court of Appeal. The dispute centred on whether a specific bequest of shares in a company, which had undergone a share split prior to the testator's death, should be interpreted as referring to the original number of shares or the increased number of shares resulting from the split.

The primary legal issue before the High Court was how to construe a testamentary gift of a specific number of shares in a company when the company had altered its share structure between the date the will was made and the date of the testator's death. Specifically, the court had to determine whether the testator's intention, as expressed in the will, was to bequeath a fixed quantity of shares or a proportion of the company's issued capital.

The High Court, in a joint judgment, held that the bequest should be construed as referring to the increased number of shares. Their Honours reasoned that the testator's intention was to dispose of a particular holding of shares, and the share split did not change the underlying proprietary interest represented by that holding. The court applied the principle that a will should be construed so as to give effect to the testator's intention, and where a specific gift of shares is made, and a subsequent alteration in the share structure occurs, the gift should be interpreted as referring to the shares as they exist at the time of the testator's death, unless there is a clear indication to the contrary. The appeal was dismissed.