Australian Securities and Investments Commission v Atlantic 3 Financial (Aust) Pty Ltd (No 4)

The Australian Securities and Investments Commission (ASIC) filed an application in the Federal Court of Australia seeking directions from the court regarding the winding up of two unregistered managed investment schemes managed by Atlantic 3 Financial (Aust) Pty Ltd. The court-appointed liquidators of the schemes proposed to transfer the assets to the investors, but this raised questions about whether the transfers were in the best interests of the investors and if they adequately protected the liquidators' entitlement to remuneration. Additionally, the court needed to determine if the proposed transfers were in the public interest.

The court held that the liquidators were not required to sign the deeds for the transfer of assets, as the proposed transfers were not in the best interests of the investors. The transfers would have resulted in the liquidators' entitlement to remuneration being significantly reduced, which was not in their interest. The court also found that the transfers were not in the public interest because they would have effectively nullified the winding up process and undermined the enforcement of the Corporations Law.

The court gave directions to the liquidators, prohibiting them from signing the deeds for the transfer of assets. The court emphasised the importance of protecting the interests of all stakeholders, including the liquidators, in the winding up process. The court also noted the need to maintain the integrity of the legal framework governing managed investment schemes.

The final orders of the court included directions that the liquidators were not required to sign the deeds for the transfer of assets, and that they should proceed with the winding up of the schemes in accordance with the Corporations Law. The court also ordered that the liquidators provide regular updates to the court on the progress of the winding up process.