What could ASIC have done about the promissory notes schemes?
13.1. Section 601ED (5) of the Corporations Act provides that “a person must not operate in this jurisdiction a managed investment scheme that this section requires to be registered under section 601ED unless the scheme is so registered”. 13.2. Section 601EE (1) of the Act then goes on to provide “if a person operates a managed investment scheme in contravention of subsection 601ED (5) the following may apply to the Court to have the scheme wound up; 13.2.1. ASIC; and the Court may make any orders it considered appropriate for the winding up of the schemes”. 13.3. At any point from the institution of the first Westpoint promissory note scheme ASIC had the power to apply to the Court to wind it up. This would involve the appointment of a liquidator who would be responsible for getting in all the property of each scheme selling it and distributing whatever funds were available to the promissory note holders. 13.4. In any such application all that was required for ASIC to establish was th
