Last week, NSW Supreme Court justice Paul Brereton appointed Bianca Rinehart trustee of the Hope Margaret Hancock Trust. The vehicle holds 23.4 per cent of Hancock Prospecting, on behalf of Mrs Rinehart's four children.

The trust was established by Mrs Rinehart's father, the late Lang Hancock.

Mrs Rinehart, who relinquished the role of trustee in 2013 before the court hearings and had opposed her daughter's appointment, has been ordered to hand over trust documents. She must also provide an account of the assets of the trust.

Mischief making

A spokesman for Hancock Prospecting said Mrs Rinehart and Mr Watroba were responsible for the "extraordinary transformation and success of the company" and that they had acted in the interests of all shareholders.

"This is mischief making, without any regard to the interests of the [Hancock Prospecting] group, and flies in the face of Bianca Rinehart's recent comment that the judges finding would restore harmony," the spokesman said.



In his judgment, NSW Supreme Court Justice Paul Brereton said: "… Mrs Rinehart has demonstrated that she is prepared to go to extraordinary lengths to retain control, directly or indirectly, of the trust, and that she is capable of exerting enormous pressure, and great influence, to do so, and to secure the appointment of a trustee acceptable to her."

One legal argument Mr Hancock's legal team are reviewing concerns so-called "minority oppression". Under the Corporations Act, directors must act fairly towards minority shareholders, and not in the sole interest of the majority.

It is unclear how any potential change to directors at Hancock Prospecting would affect the company's operations; however Mr Hancock has repeatedly said he would not seek to disrupt any of the company's existing commercial arrangements.


Justice Brereton noted in his judgment last week that both Mr Watroba and federal Agricultural Minister Barnaby Joyce tried to dissuade the children from asking the court to appoint a new trustee.

The Supreme Court action was triggered by correspondence sent from Hancock Prospecting chief financial officer Jay Newby, at the request of Mrs Rinehart, to the four Rinehart children three days before the trust was due to vest in September 2011.

The children were told they would be bankrupted from a large capital gains tax bill should they receive their due.

Justice Brereton found that Mrs Rinehart and Mr Newby had, in fact, received advice that capital gains tax would not be payable upon the trust vesting.

Mr Hancock said on Sunday that: "Further action will be taken in coming weeks with regard to the PwC manipulation".

Mrs Rinehart's two eldest children have separate proceedings in the Federal Court where they allege that Australia's richest person moved major iron ore assets reserved for the children into her own control.