ASIC has applied to the Supreme Court of Queensland for orders to wind up two public companies, Gognos Holdings Ltd (Gognos) and Dynamic Agri Tech Ltd (Dynamic), on just and equitable grounds.

 In particular, ASIC alleges that:

• the companies have been involved in multiple contraventions of corporations legislation and are not complying with their obligations under that legislation; and
• there is a justifiable lack of confidence in the conduct and management of the companies' affairs which gives rise to a risk to the public that warrants protection.

ASIC has applied for the Court to appoint Messers Michael Hill and William Harris, of McGrathNicol, as joint and several liquidators of the companies.

Gognos and Dynamic are opposing ASIC's winding up application.

On 24 October 2016, the matter was adjourned by consent until 6 December 2016 for further directions.

Background

Gognos' sole business activity is raising funds from members of the public through the issue of its shares. Those funds are on-lent to Dynamic and related entities to fund their business operations, which includes the development of technology to manufacture animal fodder in container modules. 

Gognos raised over $7 million from more than 100 shareholders since 2008.

Editor's note 1:

On 6 December 2016, the matter was listed for further directions on 8 February 2017.

Editor's note 2:

On 8 February 2017, the matter was listed for further directions on 13 April 2017.

Editor's note 3:

The winding up application is listed for a five-day trial, commencing on 7 August 2017.

Editor's note 4:

The winding up application was heard in the week commencing 7 August 2017 and judgment has been reserved.