City Pacific Income Fund, in the matter of City Pacific Income Fund [2010] FCA 437

City Pacific Income Fund, in the matter of City Pacific Income Fund [2010] FCA 437

The Income Fund could no longer achieve the purpose for which it was formed because its responsible entity had been wound up, its AFS Licence had been cancelled for general purposes, its assets had substantially lost value or ceased producing distributions, and it had virtually no income while remaining liable for fees. Unit holders and ASIC had been notified and had not objected. In those circumstances it was just and equitable under s 601ND of the Corporations Act 2001 (Cth) to order that the Income Fund be wound up and to appoint the liquidators.

Jurisdiction
Australia
Judgment Date
30 April 2010
Procedural Posture
Application to Wind Up the City Pacific Income Fund Under Ss 601 NC and 601 ND of the Corporations Act 2001 (cth) / Final Orders
Outcome
The City Pacific Income Fund was ordered to be wound up and Andrew Hugh Jenner Wily and David Anthony Hurst were appointed as joint liquidators of the Income Fund.
Legal Topics
['winding Up of Registered Scheme' 'responsible Entity in Liquidation' 'managed Investment Scheme' 'australian Financial Services Licence']
['corporations Law'] ['winding Up of Registered Scheme' 'responsible Entity in Liquidation' 'managed Investment Scheme' 'australian Financial Services Licence']

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Procedural Posture

Application to Wind Up the City Pacific Income Fund Under Ss 601 NC and 601 ND of the Corporations Act 2001 (cth) / Final Orders

Legal Issues

  1. 1 ['Whether the purposes of the City Pacific Income Fund could be accomplished.' 'Whether it was just and equitable under s 601ND of the Corporations Act 2001 (Cth) to direct the winding up of the Income Fund.' 'Whether the proposed methods of winding up, including possible sale or distribution of units in the Mortgage Fund, were permissible.']

Ratio Decidendi

The Income Fund could no longer achieve the purpose for which it was formed because its responsible entity had been wound up, its AFS Licence had been cancelled for general purposes, its assets had substantially lost value or ceased producing distributions, and it had virtually no income while remaining liable for fees. Unit holders and ASIC had been notified and had not objected. In those circumstances it was just and equitable under s 601ND of the Corporations Act 2001 (Cth) to order that the Income Fund be wound up and to appoint the liquidators.

Court Disposition

The City Pacific Income Fund was ordered to be wound up and Andrew Hugh Jenner Wily and David Anthony Hurst were appointed as joint liquidators of the Income Fund.

Orders

  • ['The City Pacific Income Fund be wound up.' 'Andrew Hugh Jenner Wily and David Anthony Hurst be appointed as joint liquidators of the Income Fund.' 'The liquidators have all the powers under the constitution of the Income Fund to wind up the Income Fund.' 'The liquidators may, from time to time, receive any fair...