April 19-23 2010
START DATE
END DATE
May 27 2010
BNY AIS Nominees Limited and others v. New Stream Capital Fund Limited
COURT:
LAW:
JUDGE(S):
CLAIMANT'S LAWYER:
DEFENDANT'S LAWYER:
The Supreme Court of Bermuda
Commercial Law Segregated Accounts Companies Act 2000
Hon. Justice Ian Kawaley
Mr. Jan Woloniecki & Mr. Alex Jenkins of Attride-Stirling & Woloniecki
Mr. Thomas Lowe QC of Counsel & Mr. Mark Chudleigh & Mr. Cameron Hill of Sedgwick Chudleigh
FACTS OF THE CASE:
The plaintiffs, BNY AIS Nominees Ltd. and various investment funds, challenged a restructuring plan implemented by New Stream Capital Fund Ltd. ("New Stream"). The plaintiffs, as holders of segregated account shares, argued that their investment rights had been unlawfully altered under the plan, which consolidated assets across different investment classes. The plan was approved without the plaintiffs? consent, allegedly violating New Stream?s bye-laws and the Segregated Accounts Companies Act 2000. The plaintiffs sought a declaration that the restructuring was unlawful and requested the appointment of a receiver to manage their interests.
SUMMARY:
(1) Did the restructuring plan violate the Segregated Accounts Companies Act? (2) Were investor rights improperly altered without consent? (3) Should a receiver be appointed to manage the affected investment accounts?
OUTCOMES:
Court found that the restructuring was in breach of the Segregated Accounts Companies Act and bye-laws, but declined to appoint a receiver, instead ordering amendments to the plan to ensure compliance with Bermuda law.
RULED IN FAVOUR OF:
BNY AIS Nominees Ltd. et al. (Plaintiffs).
PLAINTIFF/CLAIMANT
DEFENDANT:
DURATION (DAYS):
ISSUES:
RELEVANCE:
RULING:
RULING TYPE:
CASES CITED:
Join our pro membership and get all the details at your finger tips
Want to see full case details, including key arguments and claims? [Join Pro Membership] to unlock exclusive insights.
Discover the legal strategies and defenses used in this case. [Join Pro Membership] for full access.
How long did this legal battle last, and what key events happened? [Join Pro Membership] to find out.
Uncover the critical legal principles debated in this case. [Join Pro Membership] for in-depth analysis.
See why this case matters in Banking, Mortgages, and Financial Services. [Join Pro Membership] to explore its impact.
Find out the final judgment and its legal implications. [Join Pro Membership] to access the ruling.
Understand how this judicial ruling sets a precedent in law. [Join Pro Membership] for expert breakdowns.
See how past legal precedents influenced this case. [Join Pro Membership] to unlock the list.
Download Case Summary:
Explore:
EPHESIANS 6:16
PT Satria Tirtatama Energindo v. East Asia Company Limited and Bali Energy Limited
2016
RE: C (VARIATION OF ACCESS ORDER)
2015
In the Matter of IPOC Capital Partners Limited and others
2007
Hindsight law can make mistakes. Consider checking original case studies
BNY AIS Nominees Limited and others v. New Stream Capital Fund Limited
The plaintiffs, BNY AIS Nominees Ltd. and various investment funds, challenged a restructuring plan implemented by New Stream Capital Fund Ltd. ("New Stream"). The plaintiffs, as holders of segregated account shares, argued that their investment rights had been unlawfully altered under the plan, which consolidated assets across different investment classes. The plan was approved without the plaintiffs? consent, allegedly violating New Stream?s bye-laws and the Segregated Accounts Companies Act 2000. The plaintiffs sought a declaration that the restructuring was unlawful and requested the appointment of a receiver to manage their interests.