By Georgina King a Senior Associate of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group
In a decision handed down on 8 September 2016 the Federal Court has appointed provisional liquidators to online search company Uglii Corporation Limited and five of its related companies.
Prior to the decision, investigations by ASIC identified suspected contraventions of the Corporations Act 2001 (Cth) (Act) in connection with the companies including a failure to lodge financial reports, false and misleading statements in relation to sale of shares, offering securities for sale and advertising the offer without a disclosure document, having only two directors registered in respect of two public companies and trading while insolvent. At the time of the decision ASIC had applied to wind the companies up on the basis of insolvency pursuant to sections 464 and 459B of the Act or alternatively pursuant to section 461(1)(k) on just and equitable grounds.
In respect of the facts of the matter, Justice Davies noted: