Australian Securities and Investments Commission In the Matter of Richstar Enterprises Pty Ltd (ACN 099 071 968) v Carey (No 6) [2006] FCA 814

Australian Securities and Investments Commission In the Matter of Richstar Enterprises Pty Ltd (ACN 099 071 968) v Carey (No 6) [2006] FCA 814

Receiver orders may extend to trust property where the defendant is an effective controller or beneficiary with at least a contingent interest, but not generally to all trust property merely because a defendant is a beneficiary. Orders must specify trusts where control or significant interest exists.

Jurisdiction
Australia
Judgment Date
29 June 2006
Procedural Posture
Application Under S 1323 of the Corporations Act 2001 (cth) / Ruling on Extension of Receiver Orders
Outcome
Orders for extension of receiver appointments made only with respect to trusts where the defendant is the effective controller or has at least a contingent interest; general extension refused.
Legal Topics
['appointment of Receivers' 'property Interests in Discretionary Trusts' 'court Powers Under S 1323 Corporations Act']
['corporations' 'equity' 'trusts'] ['appointment of Receivers' 'property Interests in Discretionary Trusts' 'court Powers Under S 1323 Corporations Act']

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Procedural Posture

Application Under S 1323 of the Corporations Act 2001 (cth) / Ruling on Extension of Receiver Orders

Legal Issues

  1. 1 ['Does the Court have power to appoint receivers to property held by third parties as trustees for trusts in which defendants are beneficiaries, including discretionary trusts?' 'Should orders be extended to such properties?']

Ratio Decidendi

Receiver orders may extend to trust property where the defendant is an effective controller or beneficiary with at least a contingent interest, but not generally to all trust property merely because a defendant is a beneficiary. Orders must specify trusts where control or significant interest exists.

Court Disposition

Orders for extension of receiver appointments made only with respect to trusts where the defendant is the effective controller or has at least a contingent interest; general extension refused.

Orders

  • ['Plaintiff has liberty to apply for variations to receiver orders excluding general extension to all trust property.' 'Plaintiff may apply to extend orders to specific trusts and superannuation funds upon further information.' 'Receivers authorised to obtain information from trustees of trusts of which defendants...