New Zealand born Alex Brown died in 2019 a very rich man, primarily the result of mining and processing zirconium in China though licences held by his ASX listed company Astron. After his death, battle was joined between three children of his first marriage on one side and his second wife Kang Rong on the other, over assets held in name of his New Zealand family trust: Maungaiti Commercial Trust. Over $100 million was at stake: bank term deposits and a commercial property in central Auckland.
On his death, no will could be found. Estate litigation followed, after belated discovery in 2021 of a will in Hong Kong. This will names Kang Rong as executrix.
Beneficiaries of Maungaiti Trust could not agree on how Mr Brown’s New Zealand family trust assets should be split.
Negotiations were complicated by two substantial claims: Kang Rong’s claim to some fifty percent of trust assets in a relationship property claim; and status of a $67.5 million gift Mr Brown made to one of his daughters, Natalie, in 2017 – money then lent by her to pay for Maungaiti Trust’s asset purchases.
Mediation was unsuccessful.
The High Court was told subsequent negotiations lawyer-to-lawyer on behalf of all interested parties reached agreement. All signed, except a son from Mr Brown’s first marriage. With the dispute about to head to court, he informally agreed.
High Court Trusts Act approval was needed because potential trust beneficiaries included minors.
Justice Lang approved the negotiated settlement.
Settlement sees Kang Rong receiving $20 million and the three children of Mr Brown’s first marriage receiving $10 million each from cash currently held.
The Auckland commercial property is to be sold.
Net sale proceeds are to be divided equally between daughter Natalie and second wife Kang Rong with a proviso that Tiger, the son and only child from Mr Brown’s second marriage, receives a payout if net proceeds exceed a set figure.
The net half share received by Natalie is to be divided by agreement between herself and her two siblings; the three children of Mr Brown’s first marriage.
Tiger Brown has succeeded his father as managing director of Astron.
The court-approved settlement also dealt with family shareholdings in Astron.
Some of the Astron shares held by Mr Brown at his death will be transferred to family trusts for the benefit of Natalie and her sister, Julia. And it was agreed there would be no challenge to Tiger’s Astron shareholding.
Still left hanging, is distribution of several properties in New Zealand owned by Mr Brown personally and now part of his deceased estate.
Natalie and Julia agreed any benefit they might receive from these properties would be given to Tiger.
re Maungaiti Commercial Trust – High Court (29.11.24)
25.040