The Federal Court action taken by the Australian Securities and Investments Commission (ASIC) against Arrowlea Pty Ltd (Arrowlea), Arrowlea 1 Pty Ltd (Arrowlea 1), Arrowlea 2 Pty Ltd (Arrowlea 2) and Mr Terry Norman Stephens, a director of Arrowlea, was today finalised.

ASIC had applied to the Federal Court for declarations and injunctions in relation to the offer of shares in Arrowlea to protect the interests of creditors.

ASIC alleged that Arrowlea had offered its shares to the public in breach of the Corporations Act, and provided misleading information relating to dealings in its shares.

On 24 January 2002, ASIC successfully obtained interim ex parte orders in the Federal Court preventing the issue of company shares and the disposal of company property. The orders against Arrowlea 1, Arrowlea 2 and Mr Stephens were extended by the Court on 31 January 2002. The Court today made those injunctive orders final.

On ASIC’s request, the Court also made an order that Mr Stephens be permanently disqualified from managing corporations. Mr Stephens did not attend Court and the orders were made in his absence.

Arrowlea's creditors voted on Wednesday 27 February 2002 to place the company in liquidation. As a result, the Court gave ASIC leave to discontinue the action against Arrowlea.

Today’s orders finalise the Federal Court action taken by ASIC.

ASIC's investigation into the matter is otherwise continuing.