Australian Securities and Investments Commission v Stone Assets Management Pty Ltd

The case of Australian Securities and Investments Commission v Stone Assets Management Pty Ltd involved the Australian Securities and Investments Commission (ASIC) bringing an action against Stone Assets Management Pty Ltd (SAM) for various breaches of the Corporations Act 2001 (Cth). ASIC sought declarations, injunctive relief, and an order for the winding up of SAM. The primary legal issues before the court were whether SAM had contravened certain sections of the Corporations Act by carrying on a financial services business without a required Australian financial services licence, and whether misleading or deceptive conduct had occurred in relation to SAM's business operations and its status as a licensed entity. Additionally, the court had to consider the appropriate relief to be granted, including whether a winding up order was warranted and if injunctive relief was appropriate.

The court found that SAM had indeed contravened sections 911A(1), 911C(a), 1041H, 1041F, and 1041E of the Corporations Act. The court was particularly persuaded by evidence that SAM had made misleading statements on its website, falsely representing its headquarters, regulatory status, and history. The court also found that SAM had facilitated trading in contracts for difference without the necessary licence and had engaged in conduct that was misleading or deceptive. Given SAM's prior disregard for court orders and the presence of its director in China, the court deemed it necessary to grant the injunctive relief sought by ASIC. The court concluded that winding up SAM was the appropriate remedy to protect the public interest and prevent further contraventions of the Act.

The court ordered that SAM be permanently restrained from carrying on any business involving financial products, representing itself as a licensed entity, and transferring or disposing of its funds. The company was to be wound up on just and equitable grounds, with Ms Hilary Orr appointed as liquidator. SAM was also ordered to pay ASIC's costs of the application. These orders were made to ensure that SAM could not continue its unlawful activities and to provide a remedy to the public and affected parties.