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In April 2019, the Institutional Limited Partners Association (“ILPA”) released a set of considerations for Limited Partners and General Partners with respect to General Partner-led secondary fund restructurings (the “ILPA Memo”). The ILPA Memo can be viewed here.

In this proceeding, the Full Court of the Federal Court considered three main issues:

  • whether certain on-lending arrangements gave rise to legitimate tax deductions for interest;
  • duties and liabilities of directors who were not directly involved in the impugned transactions; and
  • costs payable by a representative where claims were brought against the estate of a deceased director and the representative of that estate, in his own right.

Facts