media release (15-182MR)

Court appoints liquidator to Sino Strategic

Published

Following a successful ASIC application to the Federal Court of Australia, Michael Basedow of Pitcher Partners has been appointed liquidator to ASX-listed Sino Strategic International Limited (Sino Strategic).

Today's court order follows an ASIC investigation into the company. ASIC was concerned:

  • Sino Strategic had been involved in multiple contraventions of the Corporations Act and it was  not complying with its obligations under that legislation, including failing to lodge financial reports and convene annual general meetings.
  • the affairs of Sino Strategic have not been properly managed for some time and the assets of the company were at risk, and
  • Sino Strategic’s continued failure to comply with the basic regulatory requirements of a listed company is contrary to the interests of the company’s shareholders.

ASIC Commissioner John Price said, 'ASIC is targeting poor corporate culture and poor governance practices in listed companies to ensure investors have confidence in the Australian market.

'Failure to report to members and file accounts is unacceptable. ASIC will seek to wind up companies that disregard important legal obligations which exist to protect investors.'

Background

On 1 July 2015 ASIC applied to the Federal Court in Sydney to wind up Sino Strategic on just and equitable grounds. ASIC also sought and obtained orders to freeze $115,300 sitting in Sino Strategic’s bank account.

ASIC's application was made because Sino Strategic failed:

  • to lodge its annual financial reports for the years ending 30 June 2011, 30 June 2012, 30 June 2013 and 30 June 2014 in breach of section 319(1) of the Corporations Act
  • to lodge its half-year financial reports for the periods ending 31 December 2010, 31 December 2011, 31 December 2012, 31 December 2013 and 31 December 2014 in breach of section 320(1) of the Corporations Act
  • to report to members for the years ended 30 June 2011, 30 June 2012, 30 June 2013 and 30 June 2014 in breach of section 314(1) of the Corporations Act
  • to hold AGMs for the years ended 30 June 2010, 30 June 2011, 30 June 2012, 30 June 2013 and 30 June 2014 in breach of section 314(1) of the Corporations Act
  • to provide any explanation to shareholders for the delays in financial reporting since 31 October 2013, and
  • to comply with section 201A(2) of the Corporations Act by not having two directors resident in Australia since 20 November 2012; and
  • to comply with section 204A(2) of the Corporations Act by not having a company secretary for a period in excess of 16 months.

In November 2014, Sino Strategic was convicted and fined $18,000 for failing to hold annual general meetings and lodge financial reports with ASIC (refer: 14-324MR).

Sino Strategic is the Australian holding company of a Chinese subsidiary company which operates a licensed gaming business in Shanghai.

Sino Strategic listed on the Australian Securities Exchange in May 1987. Its shares have been suspended since August 2010.

Media enquiries: Contact ASIC Media Unit