ASIC v Pegasus Leveraged Options Group Pty Ltd & Anor [2002] NSWSC 310

Reported Decision : 41 ACSR 561

New South Wales Supreme Court

CITATION : ASIC v Pegasus Leveraged Options Group Pty Ltd & Anor [2002] NSWSC 310 revised - 30/04/2002 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 1739/01 HEARING DATE(S) : 8 & 9 April 2002 JUDGMENT DATE : 24 April 2002

Australian Securities and Investments Commission PARTIES : Pegasus Leveraged Options Group Pty Ltd Craig John McKim JUDGMENT OF : Davies AJ at 1

COUNSEL : Mr D R Stack for the Plaintiff Mr J Kintominas for the Defendants, for the limited purpose of applying for adjournment; otherwise, no appearance for the Defendant SOLICITORS : Ms Jan Redfern for the Plaintiff No appearance for the Defendant CATCHWORDS : Corporations - whether managed investment scheme - whether breach of provisions of Corporations Act 2001 - whether scheme should be wound up - whether just and equitable that corporation be wound up - whether director of corporation was personally liable for breaches - whether the director should be disqualified from managing corporations - whether permanent injunctions should issue - meaning of "carry on" discussed - meaning of "operate" discussed - meaning of "investment advice business" discussed Companies Act 1961 (NSW) (repealed) Corporations Act 2001 (Cth), s9, s77, s79, s92, s93, s206A, s206B, s206E, s206F, s206G, s420, s461, s601ED, s601EE, s601FA, s670E, s700, s706, s708, s727, s780, s781, s995, s999, s1000, s1324, s1383 LEGISLATION CITED : Corporations Law (repealed), s1317DB Interpretation Code (WA), s38(1) Trade Practices Act 1974 (Cth), s75B, s82 ASIC v Chase Capital Management Pty Ltd [2001] WASC 27 ASIC v Enterprise Solutions 200 Pty Ltd (2000) 35 ACSR 620 ASIC v Hutchings (2001) 38 ACSR 387 ASIC v Parkes (2001) 38 ACLC 355 ASIC v Sweeney [2001] NSWSC 114 ASC v A S Nominees Ltd (1995) 13 ACLC 1822 CASES CITED : ASC v Spencer (1997) 25 ACSR 143 ASC v United Free Farmers Pty Ltd (1997) 24 ACSR 94 Attorney-General for NSW v Australian Fixed Trusts Limited [1974] ACLC 40-100 Australian Softwood Forests Pty Ltd v Attorney-General (NSW); ex relatione Corporate Affairs Commission (1981) 148 CLR 121 Carragreen Currency Corporation Pty Ltd v CAC (1986) 7 NSWLR 705 Hamilton v Whitehead (1988) 166 CLR 121 Re Magna Alloys & Research Pty Ltd (1975) 1 ACLR 203 Waldron v M G Securities [1974] VR 508 at 529-30 DECISION : See paragraphs 116 and 117 of the judgment.