Following an application by ASIC, the Federal Court of Australia has ordered the wind up of CME Capital Australia Pty Ltd, Boston Pacific Capital Pty Ltd, Boston Pacific Capital Australia Pty Ltd, GKN Capital Pty Ltd and IMCG Pty Ltd.
In doing so, the Court also ordered that Mr Ross Blakeley and Mr Quentin Olde of FTI Consulting be appointed as joint and several liquidators of the companies.
Justice Moshinsky ordered that the companies be wound up on just and equitable grounds given that there was a justifiable lack of confidence in the management of the companies, that the companies were insolvent, their records were in an unsatisfactory state and that there had been a number of possible contraventions of the Corporations Act 2001.
ASIC's investigation into the activities of the companies is continuing.
Background
CME Capital Australia Pty Ltd, Boston Pacific Capital Australia Pty Ltd and GKN Capital Pty Ltd operated websites through which investments were invited from the public. According to the websites, the companies—none of which hold an Australian financial services licence—issued promissory notes in exchange for investments.
Under s727 of the Corporations Act 2001, an offer of securities (which includes promissory notes) must not be made unless a disclosure document has been lodged with ASIC. An exception to this is when the offer is made to a professional investor, as defined by s9 of the Act, or has (or controls) gross assets of $10 million.
Mr Petrou is the sole director of CME Capital Australia Pty Ltd, Boston Pacific Capital Australia Pty Ltd, Boston Pacific Capital Pty Ltd and GKN Pty Ltd which operate from a residence in Rowville, Victoria. Mr Grujicic is the sole director and shareholder of IMCG Pty Ltd, with the company operating from his residence in Hallam, Victoria.
On 17 November 2015, ASIC obtained Court orders that froze the assets of the companies and restrained Mr Petrou and Mr Grujicic from leaving Australia.
In December 2015, ASIC applied to the Federal Court of Australia to wind up the companies on just and equitable grounds.
In December 2015, the Federal Court of Australia ordered the appointment of Ross Blakeley and Quentin Olde of FTI Consulting as joint and several provisional liquidators. (refer: 15-404MR)