Australian Securities and Investments Commission v AGM Markets Pty Ltd [2018] FCA 1119

Australian Securities and Investments Commission v AGM Markets Pty Ltd [2018] FCA 1119

While ASIC demonstrated reasonable prospects of winding up the corporate defendants on the just and equitable ground due to past contraventions and lack of confidence in management, urgent interim intervention was not justified because assets were adequately preserved by existing freezing orders, impugned business operations had ceased, and significant management changes had occurred. Disclosure of further financial information was ordered instead.

Jurisdiction
Australia
Judgment Date
27 July 2018
Procedural Posture
Corporations Interlocutory Application / Interlocutory Application (appointment of Provisional Liquidator or Interim Receiver), Judgment on Application
Outcome
Application dismissed
Legal Topics
['appointment of Provisional Liquidator' 'interim Receiver' 'just and Equitable Winding Up' 'freezing Orders' 'disclosure Orders' 'unlicensed Financial Advice' 'misleading or Deceptive Conduct' 'unconscionable Conduct']
['corporations' 'commercial Law' 'financial Services Regulation'] ['appointment of Provisional Liquidator' 'interim Receiver' 'just and Equitable Winding Up' 'freezing Orders' 'disclosure Orders' 'unlicensed Financial Advice' 'misleading or Deceptive Conduct' 'unconscionable Conduct']

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Procedural Posture

Corporations Interlocutory Application / Interlocutory Application (appointment of Provisional Liquidator or Interim Receiver), Judgment on Application

Legal Issues

  1. 1 ['Whether a provisional liquidator or interim receiver should be appointed to corporate defendants' 'Whether ASIC has reasonable prospects of obtaining winding up orders on just and equitable ground' 'Whether interim management/control is necessary to protect assets or interests of creditors/clients']

Ratio Decidendi

While ASIC demonstrated reasonable prospects of winding up the corporate defendants on the just and equitable ground due to past contraventions and lack of confidence in management, urgent interim intervention was not justified because assets were adequately preserved by existing freezing orders, impugned business operations had ceased, and significant management changes had occurred. Disclosure of further financial information was ordered instead.

Court Disposition

Application dismissed

Orders

  • ["Plaintiff's application for appointment of provisional liquidator to first, third and fifth defendants dismissed" "Plaintiff's application for appointment of interim receiver of assets of first, third and fifth defendants dismissed" 'First, third and fifth defendants ordered to file and serve affidavits disclosing...