ASIC winds up two Townsville companies

Wednesday 27 August 2008

ASIC has today obtained orders in the Supreme Court of Queensland to wind up two Townsville companies.

Today’s orders follow proceedings initiated by ASIC on 16 July 2008 to wind up Understanding Retirement Pty Ltd and N.F & J.M Dodd & Associates Pty Ltd on just and equitable grounds, or alternatively, insolvency.

ASIC alleges the director of both companies, Mr Neil Dodd, approached clients in, or around, early 1996 regarding an opportunity to purchase shares in Understanding Retirement Pty Ltd. These clients resided predominantly in northern Queensland and had previously consulted Mr Dodd in relation to general investment and superannuation related matters.

ASIC estimates these clients advanced at least $1.5 million towards the purchase of shares in Understanding Retirement Pty Ltd.

ASIC also alleges that some of the investors have not been issued with shares in the company and that other funds provided by clients for investment may not have been dealt with by Mr Dodd in accordance with their instructions.

Messrs William Buckby and John Park of KordaMentha Chartered Accountants were today appointed joint liquidators of Understanding Retirement Pty Ltd and N.F. & J.M. Dodd & Associates Pty Ltd.

ASIC’s investigation in relation to the conduct of the companies’ business is continuing.

Background
On 24 July 2008, Messrs Buckby and Park were appointed provisional liquidators of both companies. A report was subsequently submitted to the Court by KordaMentha which stated both companies had a deficiency in net assets and insufficient funds to pay their debts