Perpetual moves on Mahogany
Lawyers representing Perpetual Trustee Company Limited have written to Mahogany Capital confirming that Perpetual has extracted more than $1.5 million from Mahogany Capital’s 2 Series Accounts in relation to legal proceedings in both the UK and the US.
In an announcement released to the Australian Securities Exchange (ASX) today, Mahogany published the contents of a letter received from Perpetual’s lawyers, which explained that Perpetual had enforced its security over the 2 Series Accounts and had applied part of the money to partially reimburse itself for costs and expenses incurred in relation to the legal proceedings.
The letter from Perpetual’s lawyers asserted that the company was capable of doing so without notice because of “subsisting events of default in both series".
The letter said as a result of the enforcement action, Perpetual was likely to be regarded as the controller of the funds standing to the credit of the accounts, so would be filing the relevant notifications with the Australian Securities and Investments Commission.
In its ASX notification, Mahogany said Perpetual had not advised how it came to determine the amounts that it took from the two Series' bank accounts nor the apportionment between the two Series.
It said it would be taking advice and would keep note-holders informed of developments.
AUTHOR
Mike Taylor
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
