[2025] VSC 833
General information, not legal advice.
Supreme Court of Victoria
2025-12-22
Kaye JA
Original judgment source is linked above.
WILLS AND ESTATES - Judicial advice - Plaintiff acting in capacity as administrator ad colligendum bona of estate - Advice sought on proposed partial implementation of agreement between first and second defendants and the Estate - Agreement reached following judicial mediation with all parties in 2019 - Plaintiff has obtained independent legal and taxation advice on proposed implementation - Proposal within plaintiff's powers as administrator - Implementation of agreement not improper exercise of plaintiff's powers.
Supreme Court (General Civil Procedure) Rules 2025, rr 54.02.
Re Yan; Hughes v Wong (No 2) [2016] VSC 504; Mirabella Nickel Ltd (in liq) v Mining Standards International Pty Ltd [2025] WASCA 82; Morris v Smoel [2013] VSCA 11; Longboat Holdings GroupNo3 Pty Ltd v Zacole Pty Ltd & Ors [2021] VSC 280; ExxonMobil Superannuation Plan Pty Ltd v Esso Australia Pty Ltd [2010] VSC 357; (2010) 29 VR 356; Re Cohen, deceased [1975] VicRp 19; [1975] VR 187, considered.
Letters of administration ad colligendum bona of the estate of Lai Lin Yan ... be granted to ... David James Hughes ('the administrator') limited for the purpose of administering the rights of the deceased in proceeding number 2006 of 2007F6066 ('the proceeding') and the settlement agreement dated 2 June 2009 approved by this Honourable Court on 2 April 2012 ('the settlement agreement'), and limited until a grant of probate or a general grant of letters of administration may be made in respect of the estate of the deceased, or until further order.
(a) a grant of probate or a general grant of Letters of Administration of the Estate in Victoria; or
(b) a resealing in Victoria of a grant of probate or a general grant of Letters of Administration of Madam Yan's Estate in Singapore (or elsewhere outside Victoria).
(a) Is the plaintiff (in his capacity as administrator ad colligendum bona of the Estate of Madam Yan) justified in approving and giving effect to the Heads of Agreement dated 24 October 2019 as executed by Thomas Wong and Phil Wong?
(b) Is the plaintiff (in the same capacity) justified in taking the steps numbered 1 to 11 summarised in the document referred to as the 'Updated Summary of Overall Implementation Steps'?
(a) the sum of SGD$1 million to be paid upon receipt by Thomas Wong of his share of funds referred to in cl 18(g) of the agreement;
(b) the balance of SGD$1 million to be paid by Thomas Wong upon full and final settlement of the 2009 Settlement Agreement.
(a) a payment of $53,199,960 in respect of the transfer of Thomas Wong's interests in Teamhing, Winsberg and Melia to the Estate (the item 1 payment);
(b) less the sum of $24,623,390 in respect of the transfer to Thomas Wong of the interests of the Estate in certain Singapore and Malaysian companies that are within the Yan Group (the item 2 deduction);
(c) plus a payment of $10,702,901 constituting an agreed compromised amount of various claims listed in cl 2.2 of the 2019 Heads of Agreement (the item 3 payment).
(a) Clause 4.1.1 provides that Thomas Wong does not have to pay interest to either Phil Wong or the Estate;
(b) Clause 4.1.2 provides that the item 3 payment (by the Estate to Thomas Wong) includes a contribution by the Estate towards Thomas Wong's liability for capital gains tax, and that no other party is liable to contribute to that liability;
(c) Clause 4.1.3 provides that the item 3 payment includes a contribution by Thomas Wong towards Victorian landholder duty;
(d) Clause 4.1.4 addresses a number of matters relating to payment of directors' salaries.
The plaintiff's preparations for final implementation of the 2009 Settlement Agreement
(a) The value of shares to be transferred by the Estate to Thomas Wong - $53,199,960;
(b) The value of shares to be transferred by Thomas Wong to the Estate - $24,623,950;
(c) The value of shares to be transferred by Thomas Wong to Phil Wong -$9,279,473.
For the above reasons, I grant [Lawrence Wong] letters of Administration with Will Annexed in respect of the estate of [Madam Yan] deceased ... in substitution of the second defendant [Thomas Wong]. The first defendant [Stephanie Wong] shall remain as executrix.[2]
Reply submissions by plaintiff to submissions of third defendant (Lawrence Wong)
Reply submissions by first defendant (Thomas Wong)
(1) A proceeding may be brought for any relief which could be granted in an administration proceeding and a claim need not be made for the administration or execution under the direction of the Court of the estate or trust in respect of which the relief is sought.
(2) Without limiting paragraph (1), a proceeding may be brought for -
(a) the determination of any question which could be determined in an administration proceeding, including any question -
(i) arising in the administration of an estate or in the execution of a trust;
(ii) as to the composition of any class of persons having a claim against an estate or a beneficial interest in an estate or in property subject to a trust; or
(iii) as to the rights or interests of a person claiming to be a creditor of an estate or to be entitled under the will or on the intestacy of a deceased person or to be beneficially entitled under a trust;
(b) an order directing an executor, administrator or trustee -
(i) furnish and, if necessary, verify accounts;
(ii) pay funds of the estate or trust into court; or
(iii) do or abstain from doing any act;
(c) an order -
(i) approving any sale, purchase, compromise or other transaction by an executor, administrator or trustee; or
(ii) directing any act to be done in the administration of an estate or in the execution of a trust which the Court could order to be done if the estate or trust were being administered or executed under the direction of the Court.
It was accepted by both parties to the appeal that what Crockett J said in 1972 in Re Green, about the nature of the Court's consideration of a proposed course of conduct, remained a correct statement of the law. That is, it is no part of the Court's function to pass judgment on whether what the executors (or trustees) propose to do is wise or unwise. That is a matter for the executors or the trustees, as the case may be. Rather, in a case such as the present, the question for the Court is whether there is power in the administrator to do what is proposed and - assuming that there is power - whether it is:
improper [for the executors] to exercise the power which they possess in the postulated manner.
It is also common ground that the exercise of power by the Court, to authorise or refuse to authorise a proposed course of action, is discretionary.[6]
As explained by the majority in Macedonian Church, and as is apparent from the language of r 54.02 of the Rules, the purpose of a procedure of the kind set out in r 54.02 is to enable a trustee to obtain the direction or opinion of the Court on a matter of administration or management of an estate or trust, or as to the construction of a will or trust instrument, without the need to commence an administration suit.
The procedure enables the Court to give advice to a trustee, which is private in the sense that the function of the advice is to give personal protection to the trustee in respect of a course of action it proposes to undertake. The procedure is to be deployed in circumstances where the trustee is in doubt as to the course to be undertaken, and where the trustee seeks to obtain personal protection for the contemplated action.
In determining that question, the Court must consider firstly, whether there is power for the trustee to do what is proposed; and secondly, the propriety of the proposed exercise of power.
The exercise of the power will be improper where it is not exercised in good faith, where the trustee did not give real and genuine consideration to the exercise of the power, and where the exercise of the power is not in accordance with the purpose for which the power was conferred or is for an ulterior purpose.[8]
Counsel for the Trustee submitted, and I agree, that the authorities demonstrate that the Court's role is not to consider the wisdom of the Trustee's exercise of discretion but to grant the Trustee's application for an order approving the Trustee's agreement to the Compromise, if the Court is satisfied of the propriety of the application. That involves considering whether:
(a) the Trustee's decision to agree to the Compromise was within power;
(b) there was any impropriety in the Trustee's decision;
(c) the Trustee exercised its discretion in good faith; and
(d) the Trustee gave fair consideration to the relevant issues.[10]
The plaintiff as administrator ad colligendum bona
The characteristic features of the grant, however, have persisted to this day. If there should be some existing circumstance whereby a grant of probate or administration cannot be made promptly and the nature of the estate of the deceased person requires protection by a personal representative of the deceased, the court has clear power to and will authorize some person to collect and to protect the assets of the estate until a grant of probate of a will or full administration of an estate can be made. The foundation for making the grant is that the usual representation for some reason cannot be promptly obtained after death and the nature of the assets of the deceased require that something be done about their administration for their protection.[12]
(3) The administrator have power to do all things and to execute all or any instruments as may be necessary and proper for carrying the settlement agreement into complete effect, including power to give a good receipt for any moneys received under the settlement agreement, including taking such steps as he may consider appropriate to discontinue the proceeding.
(4) The administrator retain any moneys coming into his hands pursuant to the settlement agreement, and invest the same in investments authorised by law for the investment of trust funds, and hold such investments and the income thereof, until further representation of the deceased's estate is granted or until further order.
(a) the proposed actions by the plaintiff - approving and giving effect to the 2019 Heads of Agreement, and taking the steps in the 'Updated Summary of Overall Implementation Steps' - are within the power of the plaintiff as administrator ad colligendum bona of the Estate of Madam Yan;
(b) if so, whether it would be proper for the plaintiff to approve and give effect to the 2019 Heads of Agreement, and to take the steps referred to in the 'Updated Summary of Overall Implementation Steps'.
(1) calculation of the amount payable by the Estate to Thomas Wong for his interest in Teamhing, Winsberg and Melia;
(2) calculation of the amount payable by Thomas Wong to the Estate for its interest in the Singapore and Malaysian companies;
(3) calculation of the amount payable by Thomas Wong to Phil Wong for his interest in the Singapore and Malaysian companies;
(4) determination of the correct currency conversion rates and applicable dates;
(5) validation of the valuation table constructed by Mr Darryn Hockley of Grant Thornton in his valuation report dated 19 June 2019, and its currency conversion rates;
(6) determination of interest claims of parties who are to receive payments under the 2009 Settlement Agreement;
(7) determination of responsibility for, and sharing of, Thomas Wong's capital gains tax liability and his liability to Victorian landholder duty;
(8) determination of unpaid director salaries claims;
(9) determination of claims for clawback of dividends paid by Singapore companies.
(1) The proposed actions by the plaintiff - approving and giving effect to the 2019 Heads of Agreement, and taking the steps numbered 1 to 11 (inclusive) in the 'Updated Summary of Overall Implementation Steps' - are within the power of the plaintiff as administrator ad colligendum bona of the Estate of Madam Yan;
(2) It would be proper for the plaintiff to approve and give effect to the 2019 Heads of Agreement, and to take steps numbered 1 to 11 (inclusive) referred to in the 'Updated Summary of Overall Implementation Steps'.
(a) approving and giving effect to the 2019 Heads of Agreement; and
(b) giving effect to steps 1 to 11 (inclusive) in the Updated Summary of Overall Implementation Steps.
DAVID JAMES HUGHES (as administrator ad colligendum bona of the estate of LAI LIN YAN, deceased)
DAVINSKI NOMINEES PTY LTD (ACN 005 202 184) (as trustee for the Sportsgirl Centre Unit Trust)
[1] Re Yan; Hughes v Wong (No 2) [2016] VSC 504 ('the 2016 Reasons').
[2] WPA v WPB & Ors [2025] SGHCF 24 [28].
[6] Ibid [25]-[26]; Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar the Diocesan Bishop of the Macedonian Orthodox Diocese of Australia and New Zealand [2008] HCA 42; (2008) 237 CLR 66.
[10] Ibid 375 [87]; see also Re Centro Retail Australia Ltd [2012] VSC 240; (2012) 35 VR 512, 516-17 [17] (Almond J).
[12] Ibid 189; see also In the Estate of Hugh Grant Rowell [2006] SASC 313 [2]-[3] (Debelle J).
[13] Mirabela Nickel Ltd (In Liquidation) (Receivers and Managers Appointed) v Mining Standards International Pty Ltd [2025] WASCA 82 [234]-[235] (Buss P, Mitchell and Vaughan JJA).
Re Yan; Hughes
Wong
(2010) 29 VR 356
(2008) 237 CLR 66
(2012) 35 VR 512