In the matter of Idylic Solutions Pty Ltd as trustee for Super Save Superannuation Fund and others

The liquidators of several unregistered managed investment schemes, Idylic Solutions Pty Ltd as trustee for Super Save Superannuation Fund and others, applied for various directions under section 601EE(2) of the Corporations Act 2001 (Cth). The managed investment schemes had accepted investments from international business companies. The liquidators sought directions to determine whether they were justified in treating the individuals who established the international business companies as the true investors rather than the companies themselves. The liquidators also sought directions on proceeding with a pari passu distribution among investors in the schemes in proportion to their unit holdings, subject to investors first bringing into hotchpot any "returns" received. Furthermore, the liquidators requested various other directions.

The court examined whether the administrators of the schemes held investor funds on express or resulting trust for the scheme investors. The court was required to decide whether the directions sought should be made. The court considered the nature of the investments, the relationship between the individuals and the international business companies, and the equitable principles that might apply in distributing the assets of the schemes.

The court concluded that the liquidators were justified in treating the individuals who established the international business companies as the true investors. This was based on the evidence that the individuals controlled the companies and the investments were ultimately derived from their personal assets. The court also found that the liquidators were justified in proceeding on the basis of a pari passu distribution, subject to the investors first bringing into hotchpot any returns received. The court determined that the equitable principles of a resulting trust applied, and the administrators held the investor funds on resulting trust for the scheme investors. The directions sought by the liquidators were ultimately made.

The court made the directions sought by the liquidators, including treating the individuals who established the international business companies as the true investors and proceeding with a pari passu distribution subject to the investors first bringing into hotchpot any returns received. The court also made orders for the liquidators to distribute the assets of the schemes in accordance with the directions.