The Federal Court of Australia in Melbourne has granted the Australian Securities and Investments Commission (ASIC) an order to wind up Brisbane-based Global Merces Funds Management on just and equitable grounds.
The Federal Court order came less than a fortnight after ASIC suspended the company’s Australian Financial Services License (AFSL).
ASIC had applied to have Global Merces wound up on 24 January, 2020 and had commenced proceedings to protect the public in circumstances where it held concerns about the conduct of the affairs of the company and its insolvency.
They had been ordered to appoint Anthony Connelly and Michael Hill of McGrathNicol as joint liquidators for the company.
On 13 January, 2020, Jarvis Lee Archer of Revive Financial had been appointed as voluntary administrator of Global Merces, and on 21 January, 2020, ASIC had suspended their ASFL for a period of six months.
ASIC had used its power under s915H of the Corporations Act to allow the administrators to conduct certain necessary activities under the licence during administration which included:
- transferring the company to a new responsible entity;
- investigating or preserving the assets and affairs of the company; and
- winding up the company.
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