Te Mana Acknowledges Appeal Court Decision
Te Mana has acknowledged the outcome of the Eastern Bay Energy Trust (EBET) court case however it believes its appeal has been vindicated by the Appeal Court Judges’ conclusion that a poll conducted in 1999 amounted to a breach of trust.
Chairman Graham Pryor said “Te Mana is pleased to have clarity on the matter. This court action started by Eastern Bay Energy Trust back in September 2010, and our legal advice at the time was to challenge a High Court ruling. We did that and now we have the Court of Appeal’s decision, which we accept”.
The matter began when Te Mana challenged EBET’s polling process to seek consumer approval to purchase all shares in Horizon Energy that it did not already own. Te Mana filed injunction proceedings, which were successful in getting EBET to abandon the poll.
Questions were raised about whether or not EBET was in breach of its own trust deed in purchasing Horizon shares in excess of a 25% cap placed on it.
This week the Appeal Court Judges have concluded that while EBET had the power to acquire more shares, the poll to gain consumer approval was inadequate and therefore acquiring the shares was not authorised.
“Te Mana accepts that the Appeal Court Judges used their discretion in the case when determining that retaining shares in Horizon was both expedient in EBET’s management and administration and in the best interests of the beneficiaries under its deed”.
Te Mana is currently reviewing the Court’s decision and from there will determine whether or not it will appeal the decision.