The Australian Securities and Investments Commission (ASIC) has applied to the High Court for special leave to appeal part of a Queensland Court of Appeal decision with respect to former MFS Investment Management (MFSIM) chief executive, Michael Christodoulou King.
MFSIM collapsed in 2008 owing around $2.5 billion and in 2016 a court found that King and other officers of the company had collectively committed 217 contraventions of the Corporations Act and that they had breached their duties as officers of MFSIM to act honestly and in the best interests of the members of the Premium Income Fund (PIF).
The officers appealed the court’s decision in 2017 with a separate appeal brought by King resulting in a finding that his contraventions were limited to his being knowingly concerned in MFSIM’s contravention by the misapplication of $130 million of PIF’s money.
The decision by ASIC to take the matter to the High Court follows the Queensland court’s finding that King had not contravened the Corporations At as an ‘officer’ of MFSIM.
The Queensland court proceedings related to what ASIC alleged were breaches in connection with the misappropriation of $147.5 million held by Premium Income Fund unit holders.
ASIC has confirmed that it has filed an appeal application with the High Court