The “Elliott Resolution”

{Published on 29 Nov 2014}

The following documents were provided to the Australian Crime Commission that replaced the former National Crime Authority:

ACC 29 November 2014 CEO

The John Elliot Resolution

TR 29 Nov 14

The Chairman of ASIC, Mr Greg Medcraft, has claimed that Australia is a ‘Paradise’ for white-collar criminals – a statement he was forced to retract by the Acting Assistant Treasurer, Senator the Hon Mathias Cormann.

A white-collar criminal that should be well known to the Australian Crime Commission (ACC) is Mr John Dorman Elliott the former Chairman and Managing Director of Elders IXL Limited.

Mr Elliott and his associates were the subject of two major investigations by the former National Crime Authority (NCA) that was replaced by the Australian Crime Commission (ACC).

Mr Jarrett, one of these associates, served a term of imprisonment for dishonest conduct in relation to one of these investigations. Mr Elliott escaped facing a jury due to a legal technicality.

ASIC laid charges against Mr Elliott in relation to insolvent trading in another matter and these charges were upheld by the Court, with Mr Elliott being disqualified as a Company Director and then being declared bankrupt.

A copy of a document described on its face as a “Resolution” and not a “Deed” that was executed by John Dorman Elliott has been provided to the Australian Crime Commission.

This document purported to remove five natural person trustees resident in South Australia from office and replace them with a sole corporate Trustee resident in Victoria.

It is a provision of the Trustee Act 1936 (SA) that the trustees of a trust established in South Australia be resident in South Australia so that advice and directions can be obtained from the Supreme Court of South Australia in the execution of the trust should the need arise. The Court then has the power to relieve a trustee of any personal liability for any action for Breach of Trust in relation to the matter in which advice was sought from the Court.

Two of the natural person trustees resident in South Australia had been elected by the members of the fund and one by the pensioners. There were no member-elected or pensioner-elected Directors on the Board of the purported sole corporate Trustee.

This loss of prudent governance of the fund allowed the “Jarrett Deed” to be executed, however since the sole corporate Trustee had not been lawfully appointed to the office of trustee, the sole corporate trustee was in fact a “Trustee de son tort”.

A Trutee de son tort retains the liabilities of a lawfully appointed trustee, but is unable to exercise the powers of a lawfully appointed trustee, including a power to amend the terms of the trust or a power to consent to the amendment of the terms of the trust.

The purported sole corporate Trustee then call Elders Superannuation Limited was a party to the “Jarrett Deed” and this is yet another reason why the “Jarrett Deed” is void and ineffective.