Stoyef v Masu Financial Management Pty Ltd [2008] FCA 897

FEDERAL COURT OF AUSTRALIA

Stoyef v Masu Financial Management Pty Ltd [2008] FCA 897

CORPORATIONS – pleading – managed investment scheme – class action against financial services licensee which advised applicant and group members to invest in promissory notes without giving them a product disclosure statement (PDS) as (allegedly) required by s 1012A(1) of Corporations Act 2001 (Cth) – financial collapse – investors suffered loss – whether applicant required to plead knowledge that scheme was required to be registered but was not registered and was therefore liable to be wound up so as to displace s 1013C(2) of the Act – whether, on the other hand, respondent required to plead lack of such knowledge by way of defence - whether pleading of what PDS would have stated amounted to a pleading of actual knowledge. Held: pleading did, properly construed, plead actual knowledge on part of issuer, and was not required to plead actual knowledge in express terms.

PRACTICE AND PROCEDURE – pleading – managed investment scheme – class action against financial services licensee which advised applicant and group members to invest in promissory notes without giving them a product disclosure statement (PDS) as (allegedly) required by s 1012A (1) of Corporations Act 2001 (Cth) – financial collapse – investors suffered loss – whether applicant required to plead knowledge that scheme was required to be registered but was not registered and was therefore liable to be wound up so as to displace s 1013C(2) of the Act – whether, on the other hand, respondent required to plead lack of such knowledge by way of defence - whether pleading of what PDS would have stated amounted to a pleading of actual knowledge. Held: pleading did, properly construed, plead actual knowledge on part of issuer, and was not required to plead actual knowledge in express terms. Corporations Act 2001 (Cth) ss 1012A, 1013C, 1013D, 1013E, 1022B