Perennial trio lose 'loss of control’ bid
Three of the original directors of fund manager, Perennial have lost their bid to extract a change of control fee resulting from Australian Wealth Management’s 2008 merger with Perennial parent IOOF.
The action, disputing around $35 million, was mounted by Perennial’s Mike Crivelli, John Murray and Anthony Patterson who first pursued the matter in the NSW Supreme Court and, when that failed in 2011, opted to pursue the matter in the Court of Appeal.
A three-person bench of the Court of Appeal rejected their submission on Friday at the same time as ordering them to pay costs to IOOF.
The three Perennial executives had originally claimed the change of control clause had been triggered as a result of IOOF’s 2008 merger with Australian Wealth Management which resulted in AWM controlling around 70 per cent of IOOF.
The executives said AWM shareholders who voted for the merger were acting in concert to control the make-up of IOOF’s board.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
