Family
of Ch’i mineral water founder Adriaan Went gained a High Court order to get
information about their late father’s business following allegations the new
managers are filling their own pockets reducing potential distributions to them
as descendants.
The son and daughter of the late Adriaan Went
are beneficiaries of the family trust which now owns the Ch’i mineral water
business. Their father started the
business in 1987 bottling and selling flavoured spring water. He set up the Went family trust in 2002. Since his death in 2011, the business has
been controlled by two trustees: former employee David Paul van Dam and
chartered accountant Alan Richard Hall.
The High Court was told Adriaan’s children have
tried without success to get detailed information about the business. In particular, they have expressed concern
about the restructuring of Ch’i business assets after their father’s death and
the involvement of new general manager, former Frucor executive Ray
Nicholls.
Evidence was given that assets were hived off
into separate companies with debts of some four million dollars owing for
assets transferred. Mr Nicholls is
entitled to 26 per cent of any increase in the value of the business over and
above the four million dollar debt.
The trustees asked for a court ruling on whether
they were required to disclose Ch’i financial statements to any beneficiaries.
While Adriaan’s children are only discretionary beneficiaries of the family
trust, Justice Peters said they were entitled to information necessary to
satisfy themselves as to the management of trust assets: in this case any
valuations obtained for the selldown of trust assets; details of any agreements
with Mr Nicholls; annual financial statements for the various Ch’i business
entities and a schedule of the fees paid to trustees.
van Dam
v. Went – High Court (26.06.15)
15.073