Streamlined Liquidations and the Expanding Utility of s 90-15: How ASIC v 24-U Pty Ltd & Others [2025] FCA 321 expands the scope of s 90-15 for External Administrators

23/10/2025

Guest Contributors

Ben Fisher, Special Counsel, Hamilton Locke
Brit Ibanez, Deputy Managing Partner, Head of Litigation, Hamilton Locke
Kate Conneely, Partner, Registered Liquidator, Cor Cordis

The decision of Stewart J in Australian Securities and Investments Commission v 24-U Pty Ltd & Others [2025] FCA 321 is an interesting example of how courts can assist appointees in novel and practical ways. In this case, provisional liquidators were relieved from onerous obligations effective from their appointment as liquidators. It was unique both procedurally and substantively, with the outcome that liquidators Kate Conneely and Thomas Birch, from Cor Cordis, avoided the excessive costs associated with 93 assetless liquidations. The decision significantly reduced the time needed for the companies to be deregistered. Brit Ibanez and Ben Fisher at Hamilton Locke acted for Cor Cordis.

Scams at the Heart

ASIC commenced proceedings to wind up 95 companies, many of which were suspected to be created, controlled or hijacked by criminal syndicates operating online trading websites that lured investors into transferring funds, only to find those funds – and the “profits” displayed on falsified dashboards – irretrievable. ASIC’s investigation revealed near-complete dereliction of corporate governance: two companies had no director; 29 had “directors” who had never consented to act; 20 had foreign-resident directors with no entry records to Australia; eight had directors who had departed Australia with no intention to return; and 46 listed “mailbox” offices that held no records.

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