Australian Securities & Investments Commission In the Matter of Richstar Enterprises Pty Ltd ACN 099 071 968 v Carey (No 17) [2007] FCA 1395

Australian Securities & Investments Commission In the Matter of Richstar Enterprises Pty Ltd ACN 099 071 968 v Carey (No 17) [2007] FCA 1395

The Court accepted that the proposed consent orders for appointment of receivers, salary provision, and asset preservation under s 1323 of the Corporations Act 2001 (Cth) were within its power and appropriate, based on affidavit evidence, investigation status, and the need for asset protection for creditors and investors. Conflict of interest issues between court-appointed and private receivers were satisfactorily addressed with amendments.

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: Norman Phillip Carey; Second Defendant: Graeme John Rundle; Third Defendant: Cedric Richard Palmer Beck; Fourth Defendant: John Norman Dixon; Fifth Defendant: Richstar Enterprises Pty Ltd ACN 099 071 968; Sixth Defendant: Westpoint Realty Pty Ltd ACN 050 218 954; Seventh Defendant: Bowesco Pty Ltd ACN 008 915 357; Eighth Defendant: Redchime Pty Ltd ACN 117 947 805; Ninth Defendant: Keypoint Developments Pty Ltd ACN 115 507 232; Tenth Defendant: Silkchime Pty Ltd ACN 066 849 429; Twelfth Defendant: Healthcare Properties Pty Ltd ACN 075 401 955
Jurisdiction
Australia
Judgment Date
04 September 2007
Procedural Posture
Civil / Interlocutory Orders and Reasons for Proposed Consent Orders
Outcome
Proposed consent orders made as outlined, with orders for appointment and powers of receivers, asset preservation, salary and legal expense provisions, discharge and extension of specified orders, and amendments to address conflicts of interest.
Legal Topics
Appointment of Receivers, Asset Preservation Orders, Ancillary Orders, Consent Orders, Conflict of Interest, Provision for Salary and Expenses, Fund for Legal Expenses, Criteria for Acceptance of Consent Orders
Corporations Law Equity Property Law Appointment of Receivers Asset Preservation Orders Ancillary Orders Consent Orders Conflict of Interest +3 more

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Parties

Australian Securities and Investments Commission

Plaintiff

Norman Phillip Carey

First Defendant

Graeme John Rundle

Second Defendant

Cedric Richard Palmer Beck

Third Defendant

John Norman Dixon

Fourth Defendant

Richstar Enterprises Pty Ltd ACN 099 071 968

Fifth Defendant

Westpoint Realty Pty Ltd ACN 050 218 954

Sixth Defendant

Bowesco Pty Ltd ACN 008 915 357

Seventh Defendant

Redchime Pty Ltd ACN 117 947 805

Eighth Defendant

Keypoint Developments Pty Ltd ACN 115 507 232

Ninth Defendant

Silkchime Pty Ltd ACN 066 849 429

Tenth Defendant

Healthcare Properties Pty Ltd ACN 075 401 955

Twelfth Defendant

Procedural Posture

Civil / Interlocutory Orders and Reasons for Proposed Consent Orders

Legal Issues

  1. 1 Whether the proposed consent orders are within the power of the Court under s 1323 of the Corporations Act 2001 (Cth)
  2. 2 Whether the proposed orders are appropriate and justified
  3. 3 Criteria for acceptance of consent orders involving asset preservation, salary provision, and expenses

Ratio Decidendi

The Court accepted that the proposed consent orders for appointment of receivers, salary provision, and asset preservation under s 1323 of the Corporations Act 2001 (Cth) were within its power and appropriate, based on affidavit evidence, investigation status, and the need for asset protection for creditors and investors. Conflict of interest issues between court-appointed and private receivers were satisfactorily addressed with amendments.

Court Disposition

Proposed consent orders made as outlined, with orders for appointment and powers of receivers, asset preservation, salary and legal expense provisions, discharge and extension of specified orders, and amendments to address conflicts of interest.

Orders

  • Appointment of Brian Keith McMaster as receiver to property of First Defendant, except Excluded Property, until 31 January 2008 or further order.
  • Provision for payment of ongoing salaries from Richstar to Norman Phillip Carey ($5,769.23 gross per fortnight) and Karen Sandra Carey-Hazell ($2,660.00 gross per fortnight), with compulsory superannuation contributions.