The Federal Court of Australia has ruled against Endeavour Securities (Australia) and Linchpin Capital Group, finding them in violation of several provisions of the Corporations Act.
The court’s decision mandates the liquidation of both financial firms and their associated investment funds, both named the Investport Income Opportunity Fund.
Evidence presented by ASIC highlighted serious mismanagement by both entities.
Endeavour, as the responsible entity, did not:
The violations involving Linchpin include:
Justice Sarah Derrington, presiding over the case, pointed out the extensive non-compliance by both Endeavour and Linchpin with the Corporations Act.
“Given the length and breadth of the non-compliances with the act, there is more than sufficient justification for the winding up of both companies,” Derrington said.
Deloitte’s Jason Tracy and David Orr have been appointed as liquidators for both Endeavour and Linchpin, along with the Investport Income Opportunity Funds. Stakeholders are advised to direct their inquiries to Deloitte for further information.
The legal proceedings against Endeavour and Linchpin commenced in August 2018 when ASIC obtained interim orders to appoint receivers and prevent the firms from mismanaging investor funds and assets, ASIC said.
Last week, in another Federal Court case initiated by ASIC, Provide Capital’s appeal was dismissed, affirming its obligation to comply with the regulator’s document production request.
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