Gina Rinehart loses control of Hancock family trust worth US$3 billion after children win judgment
Judgment criticises mining matriarch, accused of 'gross dishonesty' by son and daughter, who had been blocked from family trust until 2068
Australian iron ore magnate Gina Rinehart's eldest daughter has won control of the US$3 billion family trust in a judgment critical of Rinehart's former control of the fund and attempts to block the long-running dispute.
The Supreme Court of New South Wales judgment loosens Rinehart's legendary grip on her business empire, with almost 25 per cent of Hancock Prospecting Pty Ltd held by the trust.
Rinehart owns the remainder of the family firm, which in turn owns 70 per cent of Roy Hill, a Pilbara-based iron ore mine due to start shipments later this year.
South Korea's Posco, Japan's Marubeni Corp and Taiwan's China Steel Corp also have stakes in the mine.
Three of Rinehart's four children - eldest Bianca Rinehart, Hope Welker and John Hancock - sued for control of the trust in 2011. They alleged their mother acted with "gross dishonesty" as trustee, when she pushed out its vesting date until 2068, meaning all four children would not get their shares until they were in their 80s and 90s.
The dispute over the trust contributed to delays in setting up funding for Roy Hill and legal experts said yesterday's ruling allowed the children to press their rights as minority shareholders and seek more power via the courts. In a 160-page judgment, Judge Paul Brereton said Rinehart "manipulated" global accountancy firm PricewaterhouseCoopers into providing advice contrary to the best interests of the children.
Brereton also said that some of Rinehart's repeated attempts to deter her children from prosecuting the case "closely approach intimidation".