A decision to remove the Melanesian Trustee Services Limited as a trustee of the Pacific Balanced Fund has been stayed by the National Court, pending the determination of an appeal filed last month.
MTSL, a trustee of the Pacific Balanced Fund, is a private equity trust for 20,000 Papua New Guineans, worth a total value of K540 million.
Melanesian Trustee Services Limited filed the appeal on 12 September, challenging a number of decisions made by the Securities of Commission of PNG.
The four decisions include the removal of MTSL as a trustee of the Pacific Balanced Fund, the decision to revocation of its appointment as a trustee of Pacific Balanced Fund, the decision to appoint Oxley Equities Ltd as interim trustee of the Pacific Balanced Fund, and the decision to conduct a regulatory review of the MTSL.
MTSL went to court seeking interim relief of those decisions, made by Alex Tongayu, in his capacity as Chairman of Securities Commission of PNG pending the appeal.
Arguments were presented in court and Justice Thomson ordered a stay on decisions of Tongayu and Securities Commission to revoke MTSL’s Capital Market License, and to remove MTSL as trustee of the Pacific Balanced Fund.
Tongayu, as chairman of Securities Commission, Securities Commission and Oxley Equities, are restrained from implementing those decisions until the determination of the appeal or further order of the court.
MTSL’s application to have the court restrain Tongayu and Securities Commission from reviewing or investigating the services was, however, refused.
The substantive appeal will be heard at a later date.
This is just one of four proceedings before court concerning MTSL and the Securities Commission.
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