Australian Securities and Investments Commission v CME Capital Australia Pty Ltd, in the matter of CME Capital Australia Pty Ltd (No 2) [2016] FCA 544

Australian Securities and Investments Commission v CME Capital Australia Pty Ltd, in the matter of CME Capital Australia Pty Ltd (No 2) [2016] FCA 544

The Court found a justifiable lack of confidence in the management of the companies, evidenced by insolvency, unsatisfactory records, possible contraventions of the Corporations Act, poor internal controls, and risks to public interest and investor protection. It was therefore just and equitable under s 461(1)(k) of the Corporations Act to wind up the companies. Continuity and efficiency supported the appointment of the current provisional liquidators, Mr Blakeley and Mr Olde, as liquidators.

Jurisdiction
Australia
Judgment Date
16 May 2016
Procedural Posture
Corporations – Winding Up Application / Judgment on Application for Winding Up and Appointment of Liquidators
Outcome
Orders made for winding up the first, second, third, fourth and fifth defendants on just and equitable ground and for the appointment of Ross Andrew Blakeley and Quentin James Olde as liquidators.
Legal Topics
['winding Up on Just and Equitable Grounds' 'appointment of Liquidators' 'insolvency' 'contraventions of Corporations Act' 'investor Protection']
['corporations Law' 'insolvency' 'corporate Regulation'] ['winding Up on Just and Equitable Grounds' 'appointment of Liquidators' 'insolvency' 'contraventions of Corporations Act' 'investor Protection']

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Procedural Posture

Corporations – Winding Up Application / Judgment on Application for Winding Up and Appointment of Liquidators

Legal Issues

  1. 1 ['Whether the companies should be wound up on the just and equitable ground under Corporations Act s 461(1)(k)' 'Whether provisional liquidators should be appointed as liquidators' 'Whether there is a justifiable lack of confidence in the management of the companies' 'Whether public interest and investor protection require winding up']

Ratio Decidendi

The Court found a justifiable lack of confidence in the management of the companies, evidenced by insolvency, unsatisfactory records, possible contraventions of the Corporations Act, poor internal controls, and risks to public interest and investor protection. It was therefore just and equitable under s 461(1)(k) of the Corporations Act to wind up the companies. Continuity and efficiency supported the appointment of the current provisional liquidators, Mr Blakeley and Mr Olde, as liquidators.

Court Disposition

Orders made for winding up the first, second, third, fourth and fifth defendants on just and equitable ground and for the appointment of Ross Andrew Blakeley and Quentin James Olde as liquidators.

Orders

  • ['The first, second, third, fourth and fifth defendants be wound up pursuant to s 461(1)(k) of the Act on the ground that it is just and equitable that they be wound up.' 'Ross Andrew Blakeley and Quentin James Olde of FTI Consulting be appointed as joint and several liquidators of the first, second, third, fourth...