Re Lawloan Mortgages Pty Ltd

The case of Re Lawloan Mortgages Pty Ltd was brought before the Federal Court of Australia. The applicant, Lawloan Mortgages, sought declarations regarding nine loan arrangements conducted through its contributory mortgage lending business. The primary request was for the applicant to be appointed for the winding-up process should an order for winding-up be made concerning the loans. The Australian Securities and Investments Commission (ASIC) intervened, arguing that the winding-up should be executed by an independent liquidator instead of the applicant.

The central legal issues before the court were whether the remaining loans constituted one managed investment scheme under section 9 of the Corporations Act 2001 (Cth) or nine individual schemes. Additionally, the court had to determine whether the applicant had operated the investment scheme or schemes or had taken steps to wind up the scheme or schemes in accordance with section 601ED(6) of the Corporations Act. The court also needed to decide if the winding-up should be conducted by the applicant itself, under the supervision of registered liquidators.

The court held that the loans constituted one managed investment scheme, as defined by the Corporations Act. It was found that the applicant had indeed operated the scheme and had taken steps to wind it up. Consequently, the court ruled that the winding-up should be undertaken by the applicant, with the supervision of Messrs. McIntosh and Park, who were registered liquidators. The court also ordered that the parties be heard as to costs.