ASIC v Berndale Capital Securities Pty Ltd [2019] FCA 595

ASIC v Berndale Capital Securities Pty Ltd [2019] FCA 595

Given significant uncertainty about client liabilities and assets, failure by defendants to comply with Court orders, and risk to client interests, appointment of receiver and manager is desirable to protect the interests of clients; asset preservation and disclosure orders alone are insufficient.

Source-derived case information.

Jurisdiction
Australia
Judgment Date
01 May 2019
Procedural Posture
Corporations/interlocutory Application / Interlocutory Orders on Application for Receiver and Manager
Outcome
Application granted; receivers and managers appointed over property of first, third and fourth defendants pursuant to s 1323(1)(h)(ii) of the Corporations Act 2001 (Cth).
Legal Topics
['appointment of Receiver and Manager' 'asset Preservation Orders' 'disclosure Orders' 'client Money Reporting' 'afsl Cancellation']
['corporations Law' 'insolvency'] ['appointment of Receiver and Manager' 'asset Preservation Orders' 'disclosure Orders' 'client Money Reporting' 'afsl Cancellation']

Source-derived case record

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Procedural Posture

Corporations/interlocutory Application / Interlocutory Orders on Application for Receiver and Manager

Legal Issues

  1. 1 ['Whether appointment of receiver and manager is necessary or desirable to protect interests of company creditors/clients' 'Whether existing asset freezing and disclosure orders sufficiently protect interests of clients']

Ratio Decidendi

Given significant uncertainty about client liabilities and assets, failure by defendants to comply with Court orders, and risk to client interests, appointment of receiver and manager is desirable to protect the interests of clients; asset preservation and disclosure orders alone are insufficient.

Court Disposition

Application granted; receivers and managers appointed over property of first, third and fourth defendants pursuant to s 1323(1)(h)(ii) of the Corporations Act 2001 (Cth).

Orders

  • ['Rachel Burdett-Baker and Bruno Secatore of Cor Cordis appointed as joint and several receivers and managers of first, third and fourth defendants without security.' "Receivers to identify, secure, and manage corporate defendants' assets; assume management; perform directors' duties; access documents; file...