Stratton v Simpson

In *Stratton v Simpson*, the High Court of Australia considered a dispute 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 significant reconstruction prior to the testator's death, should be construed as referring to the shares as they existed at the time of the will's execution or as they were at the time of the testator's death.

The Court was required to determine the proper approach to construing a testamentary gift of shares in a company that has undergone a reconstruction between the date of the will and the date of the testator's death. Specifically, the Court had to ascertain whether the testator's intention, as expressed in the will, was to bequeath the original shares or the shares that represented the testator's interest in the company at the time of death, notwithstanding the changes in the company's capital structure.

The High Court held that the general rule is that a gift of shares in a company refers to the shares as they exist at the time of the testator's death, unless the will clearly indicates a contrary intention. The Court reasoned that a testator's will speaks from the date of death, and therefore, any disposition of property should be understood in light of the property held by the testator at that time. In this instance, the reconstruction of the company did not fundamentally alter the nature of the testator's investment in the company, but rather changed the form of that investment. Consequently, the bequest was held to apply to the shares held by the testator at the time of his death, which represented his continuing interest in the company.