Australian Securities and Investments Commission v Uglii Corporation Ltd [2016] FCA 1099

Australian Securities and Investments Commission v Uglii Corporation Ltd [2016] FCA 1099

There is a reasonable prospect that a winding up order will ultimately be made on the grounds of insolvency and on just and equitable grounds due to lack of confidence in management and risk to the public interest; company responses have not addressed cogent evidence of insolvency, nor have they disproved misuse of funds or rectified compliance breaches. Given the absence of less intrusive satisfactory alternatives, appointment of provisional liquidators is warranted.

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: Uglii Corporation Limited; Second Defendant: Traralgon Technology Holding Limited; Third Defendant: Uglii Find Australia Ltd; Fourth Defendant: Bizmio Limited; Fifth Defendant: Projects Discovery Services Pty Ltd; Sixth Defendant: Uglii Ads System Pty Ltd
Jurisdiction
Australia
Judgment Date
08 September 2016
Procedural Posture
Corporations – Application for Appointment of Provisional Liquidator / Interlocutory Application – Appointment of Provisional Liquidators Pending Winding Up Proceedings
Outcome
Provisional liquidators appointed to all defendant companies; interlocutory relief granted as sought by ASIC.
Legal Topics
Provisional Liquidators, Insolvency, Public Interest, Company Management, Just and Equitable Winding Up
Corporations Provisional Liquidators Insolvency Public Interest Company Management Just and Equitable Winding Up

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Parties

Australian Securities and Investments Commission

Plaintiff

Uglii Corporation Limited

First Defendant

Traralgon Technology Holding Limited

Second Defendant

Uglii Find Australia Ltd

Third Defendant

Bizmio Limited

Fourth Defendant

Projects Discovery Services Pty Ltd

Fifth Defendant

Uglii Ads System Pty Ltd

Sixth Defendant

Procedural Posture

Corporations – Application for Appointment of Provisional Liquidator / Interlocutory Application – Appointment of Provisional Liquidators Pending Winding Up Proceedings

Legal Issues

  1. 1 Whether there is a reasonable prospect that a winding up order will be made
  2. 2 Whether there is justifiable lack of confidence in the company's management
  3. 3 Whether provisional liquidator should be appointed in public interest

Ratio Decidendi

There is a reasonable prospect that a winding up order will ultimately be made on the grounds of insolvency and on just and equitable grounds due to lack of confidence in management and risk to the public interest; company responses have not addressed cogent evidence of insolvency, nor have they disproved misuse of funds or rectified compliance breaches. Given the absence of less intrusive satisfactory alternatives, appointment of provisional liquidators is warranted.

Court Disposition

Provisional liquidators appointed to all defendant companies; interlocutory relief granted as sought by ASIC.

Orders

  • Robyn Lee Erskine and Adrian Hunter of Brooke Bird appointed as joint and several provisional liquidators to each defendant under s 472(2) of the Corporations Act 2001 (Cth)
  • Provisional liquidators to notify all creditors and members within 14 days of appointment