ASIC has applied to the Federal Court of Australia to wind up publicly-listed company, Continental Coal Ltd on just and equitable grounds.

In its application, ASIC alleges that the company is not being properly managed and that the company has been involved in multiple contraventions of the corporations legislation, including:

• a failure to comply with its continuous disclosure obligations;
• a failure to lodge its audited accounts and convene its annual general meeting;
• a failure to appoint a second Australian resident director;
• a failure to hold application monies received under a Rights Issue on trust; and
• insolvency.

ASIC made the application to protect the interests of shareholders, investors and creditors.

ASIC has applied for Mr Robert Michael Kirman, of McGrathNicol, Perth, to be appointed as provisional liquidator and, pending hearing of the winding up application, as official liquidator of the company, to provide a report to the court and to ASIC on the affairs of the company.

The matter has been listed for hearing in the Federal Court of Australia in Perth on 8 April 2016.

ASIC's investigation into the affairs of Continental Coal is continuing.

Background

A Western Australia-based director of Continental Coal Limited, Mr Peter Neil Landau, has consented to interim asset preservation orders over his personal assets, and the assets of Okap Ventures Pty Ltd and Doull Holdings Pty Ltd (of which companies Mr Landau is sole director), following an application by ASIC to the Federal Court in Perth (refer: 15-410MR). Mr Landau consented to the orders on the basis that the Defendants' rights are reserved and that they do not accept the orders should have been made.

ASIC's winding up application follows action to restrict Continental Coal Limited (Continental Coal) from issuing a reduced content prospectus until 26 February 2017 (refer: 16-061MR).

Editor's note 1

At a hearing on 8 April 2016, ASIC's application for the appointment of a provisional liquidator to Continental Coal Ltd was adjourned to 19 April 2016 at 10.15 am to permit the company to file any evidence it wishes to rely on. In the interim, Continental Coal Ltd is to give ASIC 48 hours notice of any dealings in relation to its assets.