In Wellington Capital Limited, in the matter of Premium Income Fund v Premium Income Fund Action Group [2011] FCA 781 Federal Court Judge Dowsett declared that a member-convened meeting called to remove Wellington as responsible entity of the Fund was irregularly called and was invalid and should not be allowed to proceed as it caused, or may cause substantial injustice which cannot be remedied by any order of the Court.

The irregularities were that the meeting convenors used an out of date member register, gave short notice and did not include the meeting location in the notice.

The judge concluded that ” I accept that the unit holders are, themselves, best equipped to make decisions affecting their investments. In general it is desirable that a meeting, once called, proceed, and that those entitled to vote have the opportunity to do so. However the circumstances in this case are most unusual and, at least to some extent, appear to have been produced by the way in which the meeting was called, as well as by the conduct of the parties to these proceedings and by that of Castlereagh.”

He declined to give relief under section 1322(4) of the Corporations Act for the procedural irregularities.