Following a successful application made by ASIC, the Federal Court of Australia (the Federal Court) has made orders winding up publicly-listed company, Continental Coal Limited (CCC), on just and equitable grounds and appointing Mr Robert Kirman, McGrathNicol, as official liquidator of  CCC.

In its application, ASIC alleged that CCC 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 Commissioner John Price said, 'This case confirms that listed companies which are not properly managed and are failing to meet the requirements under the Corporations Act, risk winding up action by ASIC'.

ASIC's investigation into the affairs of CCC is continuing.

Background

A Western Australia-based director of CCC, 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 (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 CCC from issuing a reduced content prospectus until 26 February 2017 (refer: 16-061MR).

ASIC earlier successfully applied to the Federal Court  for the appointment of a provisional liquidator to CCC. The Federal Court held that "all the evidence suggests that the company lacks any proper governance or management at this point", and appointed Mr Robert Michael Kirman, McGrathNicol, as provisional liquidator of CCC (refer: 16-123MR).