Australian Securities and Investments Commission v PJCB International Ltd

The case involved the liquidator of PJCB International Ltd, a company that had operated a managed investment scheme. The liquidator applied to the court for directions on the disposition of the funds held by him, which were derived from the winding up of the unregistered scheme. The Australian Securities and Investments Commission sought to intervene in the proceedings, raising concerns about the liquidator's actions and the disposition of the funds. The primary issue before the court was whether the liquidator was justified in deducting costs from the fund before paying it into court. The court was also required to consider the power of the court under section 601EE(2) of the Corporations Act to give directions in relation to the disposition of the fund.

The court examined the statutory framework governing managed investment schemes and the role of the liquidator in administering the winding up of such schemes. It noted that the liquidator's primary responsibility was to determine the proper distribution of the assets among the creditors and members of the company. The court held that the liquidator had a duty to investigate the nature and ownership of the funds held by him, and that he was entitled to deduct reasonable costs incurred in doing so from the fund before paying it into court. The court found that the liquidator had acted within his authority in forming his opinion that the money held by him was not scheme money and in deducting the costs of investigation from the fund. The court further held that the ASIC did not have standing to intervene in the proceedings and that the liquidator's actions were justified.

The court granted the liquidator's application to pay the remaining funds into court, subject to further orders. The court noted that the liquidator had acted diligently and in good faith in administering the winding up of the scheme and in determining the proper disposition of the funds. The court emphasised the importance of the liquidator's role in protecting the interests of the creditors and members of the company and in ensuring that the assets of the company are properly distributed. The court also noted that the ASIC's concerns about the disposition of the funds were misplaced and that the liquidator's actions were in accordance with the law. The court ordered that the remaining funds be paid into court, subject to further orders, and that the liquidator be allowed to deduct the costs of investigation from the fund before doing so.