Wilson v Alexander & Ors

The High Court of Australia considered an appeal concerning the interpretation of a will. The appellant, Mr. Wilson, was the executor and a beneficiary under the will of the late Mr. Alexander. The respondents were other beneficiaries under the same will. The dispute centred on whether a specific bequest of shares in a company, which had been the subject of 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 following the split.

The primary legal issue before the High Court was how to construe the testator's intention regarding the bequest of shares in light of a subsequent share split. Specifically, the court had to determine whether the testator's testamentary intention was to bequeath a fixed number of shares, or a proportion of his shareholding in the company, and how the share split affected the subject matter of the bequest. This involved considering principles of will construction, particularly in circumstances where the subject matter of a gift changes between the date of the will and the date of the testator's death.

The High Court, by majority, held that the bequest should be interpreted as referring to the increased number of shares. The majority reasoned that the testator's intention was to give a proportion of his shareholding in the company, rather than a fixed number of shares. They applied the principle that a gift of a specific number of shares in a company should be construed as referring to the number of shares held by the testator at the time of his death, if the subject matter of the gift has been altered by a subsequent event such as a share split, provided that the testator's intention to bequeath the entirety of his holding in that company can be discerned. The court found that the wording of the will, when read in context, indicated an intention to pass on the testator's entire interest in the company's shares as they existed at his death.

The appeal was dismissed.