Australian Securities and Investments Commission v Letten (No 3)

The Australian Securities and Investments Commission (ASIC) brought proceedings against Mark Ronald Letten and others, seeking various orders under the Corporations Act 2001 (Cth). The primary issue in Australian Securities and Investments Commission v Letten (No 3) was whether the Federal Court should grant receivers and managers appointed by ASIC the power to sell property associated with various investment schemes. The court needed to determine if the receivers and managers should be granted the power of sale over specific properties linked to these schemes and, if so, under what conditions to ensure a fair and orderly sale process that maximises returns for investors.

Justice Gordon concluded that the receivers and managers should be granted the power of sale for the properties associated with the schemes numbered 4, 5, 8, 9, 13, and 14. The court considered that the investors' concerns about the sale process being conducted in an orderly fashion and achieving the best possible returns were adequately addressed by the proposed orders. The court outlined specific conditions for the sale process, including obtaining proposals from at least three real estate agents, selecting the most appropriate agent based on their proposals, conducting a marketing campaign for a minimum of four weeks, and setting out the sale process in a letter to all investors. The proceeds of the sales were to be paid into separate accounts and could not be distributed without further order from the court, except for paying the agents' reasonable fees and expenses. The further hearing of the matter was adjourned to 9:30 am on 28 May 2010, and costs were reserved.