Australian Securities Commission v Smith, Leonard John & Ors [1998] FCA 964

Australian Securities Commission v Smith, Leonard John & Ors [1998] FCA 964

Where all persons with possible interests in the funds have been identified and have consented (save one lender who has already recovered funds), and there is no external administration or insolvency, the Court may, exceptionally, order distribution by the receiver under s 1323 Corporations Law.

Jurisdiction
Australia
Judgment Date
05 August 1998
Procedural Posture
Application Under Corporations Law S 1323 / Order Following Hearing
Outcome
Orders made as sought by the applicant, subject to filing required affidavit.
Legal Topics
['receivership' 'distribution of Frozen Funds' 'unsecured Creditors' 'court Appointed Receiver']
['corporations Law'] ['receivership' 'distribution of Frozen Funds' 'unsecured Creditors' 'court Appointed Receiver']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application Under Corporations Law S 1323 / Order Following Hearing

Legal Issues

  1. 1 ['Whether the Court has power to order distribution by receiver of funds gathered under s 1323 Corporations Law in absence of consents by all persons with interests in those funds']

Ratio Decidendi

Where all persons with possible interests in the funds have been identified and have consented (save one lender who has already recovered funds), and there is no external administration or insolvency, the Court may, exceptionally, order distribution by the receiver under s 1323 Corporations Law.

Court Disposition

Orders made as sought by the applicant, subject to filing required affidavit.

Orders

  • ['Receiver to transfer all funds from specified US Currency Account to Coastal Financial Group Trust Account.' 'Receiver to distribute all funds in Trust Account pro rata to investors listed in exhibit SJR1 to affidavit of Sean James Riordan dated 24 July 1998.' 'Upon clearance of cheques, receiver released from all...