ASIC has obtained an urgent injunction in the Federal Court of Australia against Macro Realty Developments Pty Ltd (Macro), Property Tuition Pty Ltd (21st Century Property) and Education Holdings Pty Ltd (21st Century Education).
The injunctions prohibit Macro, 21st Century Property and 21st Century Education from promoting and marketing a proposed Pilbara property investment, which included a seminar that was to be held for prospective investors on 10 September 2015, until further order.
ASIC alleges that the proposed Pilbara property investment was marketed and promoted by 21st Century Property and 21st Century Education using the tagline "Do you know how to buy Australian property, no money down?". The proposed investment was to involve investors being appointed as directors and shareholders of a company and creating a trust. Investors were then to cause that company to acquire certain properties from Macro in Newman Estate, Western Australia. The investors were to be paid a director's fee but agreed that Macro would be the sole decision-maker for the company.
ASIC alleges that by agreeing to become a director of a company where Macro will remain the sole decision-maker for all business associated with the company, 21st Century and Macro are counselling and procuring investors to contravene their director's duties under the Corporations Act
ASIC also alleges that the investment documents in relation to the proposed Pilbara property investment are misleading and deceptive, and that the investment proposal is a financial product.
The matter is set down for final hearing on 26 October 2015 where ASIC will ask the Court to make declarations that the defendants contravened the Corporations Act, and for the injunctions against Macro, 21st Century Education and 21st Century Property to be made permanent.
Background
ASIC has also issued proceedings in the Federal Court of Australia against 21st Century Property and 21st Century Education in relation to their promotion and sale of interests to investors in five land banking schemes (refer MR 15-214).
Editor's note 1:
On 26 October 2015, the Federal Court adjourned and re-listed the proceeding for final hearing on 21 December 2015.
Editor's note 2:
On 16 December 2015, the Federal Court adjourned and re-listed the proceeding for final hearing on 23 to 24 March 2016.
Editor's note 3:
On 23 March 2016, the Federal Court of Australia permanently restrained the marketing and promotion of a proposed Pilbara property investment by Macro Realty Developments Pty Ltd and made declarations that Macro, Property Tuition Pty Ltd and Education Holdings Pty Ltd breached various provisions of the Corporations Act by promoting and marketing the investment proposal. (Refer: 16-092MR)