More Harts companies to be wound up
Six more Harts companies will be wound up after the Federal Court of Australia granted an application to appoint a liquidator to the companies which are within the Harts Australasia accounting group.
The application was brought by the Australian Securities and Investments Commission (ASIC) and was granted by the Court on Friday after the regulator was concerned about the corporate governance of the companies, as well as possible breaches of fiduciary or statutory duties of directors and the solvency of the group.
The companies which were placed under liquidation were Harts (Newco 4), Firstmac Securities Investments, Harts (Newco 3), Firstmac Securities, First Mortgage Management and First Mortgage Human Resources.
John Greig and Jack Duff of Deloitte Touche Tohmatsu were named as joint liquidators of the companies in a moved which followed their appointment as provisional liquidators to the entire Harts Australasia group on October 2, 2001.
Both Greig and Duff were also appointed as joint liquidators to the listed company Harts Australia and its 26 subsidiary companies on 31 October 2001.
However, Friday’s proceedings against three other companies caught up in ASIC’s action against Harts, Double H Securities and Wessex Fund Management and H No.1, were adjourned to December 14, 2001.
The reason for the adjournment for the first two companies is due to claims they were transferred from the Harts Australasia group prior to the litigation while the identity of the holding company of the third group has yet to be established.
Trading in the shares of Harts Australasia has been suspended since September 24 as a result of ASIC's action.
AUTHOR
Jason Spits
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