ASIC has the power to wind up companies – and uses that power

The Supreme Court of New South Wales has wound up a number of companies promoted by Online Super Pty Ltd (Online Super) following an application by ASIC.

ASIC brought its application following an investigation which raised concerns that Mt Whitsunday Pty Ltd, Maxpower Mortgage Services Pty Ltd and Maxwell Phillip Enterprises Pty Ltd:

• were insolvent;
• misapplied funds raised from investors;
• did not keep proper records; and
• operated unregistered managed investments schemes.

The application to wind up an additional company in the group, 115 Constitution Road Pty Ltd, was adjourned for 14 days following the appointment of an administrator to the company on 27 February 2009.

ASIC alleged that between December 2002 and September 2005 the four companies raised in the order of $9.5 million from approximately 150 investors who were offered returns of up to 80 per cent per annum. The majority of these investors were operating self managed superannuation funds and were introduced to the companies during investment seminars held by Online Super between 2002 and 2005.