The High Court in Auckland has thrown out a bid by property investor DNZ Property Fund to force a special meeting for Argosy Property Trust unitholders to vote on dumping the ANZ Bank-owned manager.
In the High Court in Auckland, Judge Raynor Asher today ruled against DNZ's bid, saying the Argosy manager and its trustee, New Zealand Guardian Trust, made an "understandable decision in the circumstances" not to hold a special meeting, and that there wasn't a breach of the trust deed or of statutory duty.
"DNZ will be able to put the existing proposed resolutions and any other resolutions it wishes to put at the annual general meeting," Judge Asher said in his written judgement.
"It can if it wishes vigorously pursue its alternative proposal, but there is nothing to show that the independent directors and Guardian Trust are in all the circumstances acting in breach of their duties in refusing to respond to the requisition by calling a meeting immediately," he said.
DNZ was hoping to force two special meetings for unitholders to dump the OnePath NZ Ltd. manager, and then to vote on DNZ internalisation proposal that would see the rival property entities merge. Along with the scheduled annual meeting, that would make three meetings in quick succession.
