Prime Trust Action Group Unitholder Update No. 3 – 19 January 2011


Firstly, we would like to pass on our best wishes to all those unitholders who have been personally impacted by the recent flood crisis in the eastern states.  


Since our last update, we have continued to be inundated with registrations for the Action Group and would like to thank everyone for their support and encouragement.  To date, more than 2,200 unitholders have joined the Action Group, representing more than 251m units or 44% of total unitholdings.   At this stage, we have only written to a few thousand unitholders but word obviously continues to spread by word-of-mouth.  We have also appreciated the willingness of unitholders to undertake mailouts on our behalf and the assistance provided by many financial advisers who have encouraged their clients to join the Action Group.  We expect our membership to exceed 50% by the end of this month.  


Mr Stirling Horne, from Lawler Draper Dillon (as administrator of the Responsible Entity and Prime Trust) recently conducted unitholder briefings in Brisbane, Sydney and Melbourne.  The briefings were very well supported, with approximately 500 unitholders attending.  Mr Horne provided an overview of the administration process and outlined some of the work that had been undertaken to date.  The Prime Trust Action Group raised many issues about the management of the Trust and Mr Horne promised to investigate all of the issues and report back to the Action Group.  At each of the briefings, a large number of unitholders raised issues and expressed their overall dissatisfaction with the Trust’s manager.  


At the briefings, the Prime Trust Action Group also referred to numerous examples where we believe the Trust has been operated illegally, where we believe the Trust has been operated in the best interests of the manager and to the very great detriment of unitholders, and where we believe the manager has engaged in misleading and deceptive conduct.  The Action Group called on Mr Horne to complete his investigations as a matter of urgency and recover all funds, and all Trust assets, which are found to have been misappropriated.  The Action Group also called on ASIC (who were in attendance at some of the briefings) to launch a formal investigation into the Trust and prosecute, to the full extent of the law, all parties found to have acted illegally.


Further information about the unitholder briefings is available via the following links:


Detailed Summary of the Briefings:

Article by Australian Financial Review: then click on ‘Article in AFR’

Response to Dr Wooldridge:


At the unitholder briefings, Mr Horne advised that he is prepared to accept unitholders as contingent creditors of the Trust.  By allowing this to occur, unitholders will have the ability to vote at the Second Creditors Meeting which is likely to be conducted in May 2011.  We are in the process of liaising with Mr Horne to determine what documentation he will require in order to facilitate this outcome and will provide a further update on this in the near future.


Since the First Creditors Meeting in November 2010, the Action Group has made a number of submissions to Mr Horne and also had a face-to-face meeting.  The Action Group has requested a number of documents in relation to the management of the Trust and some of these documents have already been provided.  Mr Horne has undertaken to provide a written response to our outstanding requests by the end of January 2011.


We are still looking for further volunteers to come forward so if you are able to undertake a further mailout to 100 unitholders, please contact us at [email protected].


Thank you once again for your support to date and please remember to regularly check our website for further news:



Prime Trust Action Group