Australian Securities and Investments Commission v Idylic Solutions Ltd; Australian Securities and Investments Commission v P.J.C.B. International Ltd [2009] NSWSC 1306

Reported Decision : 76 ACSR 129

New South Wales Supreme Court

CITATION : Australian Securities and Investments Commission v Idylic Solutions Ltd; Australian Securities and Investments Commission v P.J.C.B. International Ltd [2009] NSWSC 1306

HEARING DATE(S) : 01/09/09

JUDGMENT DATE : 1 December 2009

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Barrett J

DECISION : Directions as sought by liquidator to be made. Short minutes to be brought in.

CATCHWORDS : CORPORATIONS - managed investment schemes - unregistered scheme - earlier order for winding up of scheme - application by liquidator for directions - statutory basis for the making of directions - nature of interests of contributors to pooled investment fund - EQUITY - maxims of equity - "equality is equity" - "he who seeks equity must do equity" - hotchpot - how losses to be borne among contributors to pooled investment fund - where "returns" to early contributors paid out of capital - whether "returns" should be brought into hotchpot - where money of one pooled fund mixed with money of another. -

LEGISLATION CITED : Corporations Act 2001 (Cth), ss 601EE(2),

CATEGORY : Principal judgment

Australian Securities and Investments Commission v Edwards [2009] QSC 360 Australian Securities and Investments Commission v Tasman Investment Management Ltd [2005] NSWSC 1332; (2005) 56 ACSR 449 Australian Securities and Investments Commission v Tasman Investment Management Ltd [2006] NSWSC 943; (2006) 202 FLR 343 Banco de Portugal v Waddell (1880) 5 App Cas 161 Barlow Clowes International Ltd v Vaughan [1992] 4 All ER 22 Burton v Arcus [2006] WASCA 7l; (2006) 32 WAR 366 Clayton's Case (Devaynes v Noble (1816) 1 Mer 572; 35 ER 781 Cleaver v Delta American Reinsurance Co [2001] 2 AC 328 Commerzbank Aktiengesellschaft v IMB Morgan plc [2005] 2 All ER (Comm) 564 Dering v Earl of Winchelsea (1787) 1 Cox Eq Cas 318; 29 ER 1184 Edwards v Freeman (1727) 2 P Wms 435; 24 ER 803 Hall v Robinson 8 Ired 56 (1847) Keefe v Law Society of New South Wales (1998) 44 NSWLR 451 Lake Coogee Estate Management Pty Ltd v Australian Securities and Investments Commission [2009] FCA 471 Law Society of Upper Canada v Toronto-Dominion Bank (1998) 169 DLR (4th) 353 Meir v FN Management Pty Ltd [2005] QCA 408; [2006] 1 Qd R 339 CASES CITED : Miller v Sawyer 30 Vt 412 (1858) Pearce v Piper (1809) 17 Ves 1; 34 ER 1 Ponzi v Fessenden 258 US 254 (1922) Re Global Finance Group Pty Ltd [2002] WASC 63; (2002) 26 WAR 385 Re Hobourn Aero Components Ltd's Air Raid Distress Fund; Ryan v Forrest [1946] Ch 86 Re Lead Company's Workmen's Fund Society [1904] 2 Ch 196 Re Magarey Farlam Lawyers Trust Accounts (No 3) [2007] SASC 9; (2007) 96 SASR 337 Re Ontario Securities Commission and Greymac Credit Corp (1986) 30 DLR 4th 1 Re Printers and Transferrers Amalgamated Protection Society [1899] 2 Ch 184 Re Stacks Managed Investments Ltd [2005] NSWSC 753; (2005) 219 ALR 532 Re Sutherland; French Caledonia Travel Service Pty Ltd [2003] NSWSC 1008; (2003) 59 NSWLR 361 Re Tennant; Mortlock v Hawker [1942] HCA 3; (1942) 65 CLR 473 Re Walter J Schmidt & Co 298 F 314 (1923) Selkrig v Davies (1814) 2 Dow 230; 3 ER 848 Steel v Dixon (1881) 17 Ch D 825 Taylor v Secretary to the Department of Social Security (1988) 79 ALR 327 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1988] HCA 44; (1988) 165 CLR 107