In the matter of Idylic Solutions Pty Ltd - Australian Securities and Investments Commission v Hobbs [2012] NSWSC 1276

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Idylic Solutions Pty Ltd - Australian Securities and Investments Commission v Hobbs [2012] NSWSC 1276 Hearing dates: 4-6, 9-13, 16, 17, 19, 23-27 & 30 July, 3, 8-10, 14-16, 21-24 & 29 August, 5-6, 10,12 September 2012 Decision date: 24 October 2012 Jurisdiction: Equity Division - Corporations List Before: Ward J Decision: Judgment for plaintiff against first, third, fourth and eighth defendants on some or all of the claims made against them. Orders to be made following hearing as to penalty. Catchwords: CORPORATIONS - whether various defendants acted as de facto or shadow directors in relation to various of impugned corporations - directors and officers duties - duty of care and diligence - duty to act in good faith and for a proper purpose - duty not to make improper use of position - whether officers were 'involved' in contraventions by others - Corporations Act 2001 (Cth) ss 79, 180(1), 181 and 182

AGENCY - whether illegal acts were within scope of agency - whether independent contractors were acting as agents - consideration of the scope of authority - whether scope of authority limited to the express terms of a contractual document

CORPORATIONS - financial services and product - whether business confined to provision of financial education or extended to provision of a financial product or financial product advice - whether business required a financial services licence - Corporations Act 2001 (Cth) s 911A

CORPORATIONS - managed investment scheme - whether there was contribution of money or money's worth in consideration for an interest in the benefits produced by the scheme - whether scheme was required to be registered - Corporations Act 2001(Cth) s 601ED(5)