Australian Securities and Investment Commission v Aviation 3030 Pty Ltd (No 2) [2019] FCA 391

Australian Securities and Investment Commission v Aviation 3030 Pty Ltd (No 2) [2019] FCA 391

It was appropriate to grant the short stay because the defendants sought only a 7 day stay to consider reasons and possible appeal, ASIC and the investor group supporting ASIC's position did not oppose the stay, and counsel gave undertakings on behalf of the defendants and Messrs Lao and Taing, having regard to the principles summarised in Deputy Commissioner of Taxation v Ansett Resources & Industries Pty Ltd.

Jurisdiction
Australia
Judgment Date
20 March 2019
Procedural Posture
Corporations Application for Interim Stay of Winding Up Orders / Application for a Short Stay After Winding Up Orders Were Pronounced
Outcome
Short stay granted; winding up and associated orders stayed until 4:30PM on 26 March 2019; costs reserved.
Legal Topics
['winding Up Orders' 'stay Pending Consideration of Appeal' 'managed Investment Scheme Winding Up' "court's Discretion to Stay Orders"]
['corporations' 'insolvency'] ['winding Up Orders' 'stay Pending Consideration of Appeal' 'managed Investment Scheme Winding Up' "court's Discretion to Stay Orders"]

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Procedural Posture

Corporations Application for Interim Stay of Winding Up Orders / Application for a Short Stay After Winding Up Orders Were Pronounced

Legal Issues

  1. 1 ['Whether the Court had power to grant a short stay of winding up orders.' 'Whether it was appropriate to grant a 7 day interim stay to allow the defendants to consider reasons, obtain advice on possible appeal grounds and prospects, and decide whether to appeal.']

Ratio Decidendi

It was appropriate to grant the short stay because the defendants sought only a 7 day stay to consider reasons and possible appeal, ASIC and the investor group supporting ASIC's position did not oppose the stay, and counsel gave undertakings on behalf of the defendants and Messrs Lao and Taing, having regard to the principles summarised in Deputy Commissioner of Taxation v Ansett Resources & Industries Pty Ltd.

Court Disposition

Short stay granted; winding up and associated orders stayed until 4:30PM on 26 March 2019; costs reserved.

Orders

  • ['Pursuant to s 461(1)(k) of the Corporations Act 2001 (Cth), the first to sixth defendants be wound up.' 'George Georges and John Lindholm be appointed as joint and several liquidators of the first to sixth defendants for the purposes of the winding-up.' 'Pursuant to s 601EE(2) of the Corporations Act, the managed...