Warne v GDK Financial Solutions Pty Ltd; Billingham v Parbery [2006] NSWSC 259

Reported Decision : (2006) 24 ACLC 1000

New South Wales Supreme Court

CITATION : Warne v GDK Financial Solutions Pty Ltd; Billingham v Parbery [2006] NSWSC 259

HEARING DATE(S) : 27, 28, 29 September, 5 October 2005

JUDGMENT DATE : 7 April 2006

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : Directions made as to winding up of unregistered Management Scheme.

CATCHWORDS : CORPORATIONS [1208]- Managed investment schemes- Winding up of unregistered schemes- How effected- Proposed transfer of assets and liabilities to new scheme- Problems- Priority of costs among (1) court appointed investigating accountants (2) liquidator of Trustee and (3) liquidator of Scheme- Trustee of Scheme prima facie in breach of trust- Whether entitled to indemnity against assets.

LEGISLATION CITED : Corporations Act 2001 (Cth), ss 9, 443D, 443E, 443F, 556(1), 601ED(1)(a) and (b), 601EE(2), 601FR Statute of Uses 1535 (Imp)

ASIC v Atlantic 3 Financial (Aust) Pty Ltd (2003) 47 ACSR 52 (QSC) ASIC v Atlantic 3-Financial (Aust) Pty Ltd [2004] 1 Qd R 591 ASIC v Chase Capital Management Pty Ltd [2001] WASC 27 ASIC v Commercial Nominees of Australia Ltd (2002) 42 ACSR 240 ASIC v Takaran Pty Ltd (2002) 43 ACSR 46 Body Corporate for Cairns Village Resort Community Titles Scheme 18161 v FN Management Pty Ltd (2004) 51 ACSR 598 (QSC) Cherry v Boultbee (1839) 4 My & Cr 442; 41 ER 171 Clark Equipment Credit of Australia Ltd v Como Factors Pty Ltd (1988) 14 NSWLR 552 13 Coromandel Place Pty Ltd v CL Custodians Pty Ltd (1999) 30 ACSR 377 Corumo Holdings Pty Ltd v C Itoh Pty Ltd (1991) 24 NSWLR 370 Crocombe v Pine Forests of Australia Pty Ltd (2005) 219 ALR 692 General Credits Ltd v Tawilla Pty Ltd [1984] 1 Qd R 388 Godfrey v Scottish Pacific Business Finance Pty Ltd (2004) 51 ACSR 272 CASES CITED : Herdegen v Federal Commissioner of Taxation (1988) 84 ALR 271 Islamic Republic of Iran Shipping Lines v Zannis Compania Naviera SA (The Tzelepi) [1991] 2 Ll Rep 265 Jennings v Mather [1902] 1 KB 1 Mier & Jonsson v FN Management Pty Ltd (2005) 23 ACLC 1,888 Murphy v Zamonex Pty Ltd (1993) 31 NSWLR 439 Re Aged Care Facility Partnership Scheme; ASIC v Primelife Corporation Ltd (2005) 54 ACSR 536 Re Central Commodities Services Pty Ltd [1984] 1 NSWLR 25 Re Korda; In the matter of Stockford Ltd (2004) 140 FCR 424 Re Stacks Managed Investments Ltd (2005) 54 ACSR 466 Re Staff Benefits Pty Ltd [1979] 1 NSWLR 207 Re Suco Gold Pty Ltd (1983) 7 ACLR 873 Re Sutherland; French Caledonia Travel Service Pty Ltd (2003) 59 NSWLR 361 RWG Management Ltd v Commissioner for Corporate Affairs [1985] VR 385 Shirlaw v Taylor (1991) 31 FCR 222