Matthew Jones KC (leading Mr L Inglis) appeared for the plaintiffs, instructed by Merton Legal.
This decision considered elements of the definition of a “managed investment scheme” in s 9 of the Corporations Act 2001, particularly whether an investor who gives notice to rescind an investment contract under s 601MB of the Act remains a “member” of the scheme. It did so in the context of a summary judgment application, where the defendant argued that the plaintiffs ceased to be “members” of the relevant scheme after the issue of s 601MB notices, and thus lacked standing to apply for the winding up of the scheme and the defendant. Ultimately, the summary judgment application was dismissed. It was held that there were real prospects of the plaintiffs establishing at the final hearing that they remain members of the scheme as, even if the investment contract is void, they may still hold an unenforceable right to benefits in the scheme.
The judgment can be read by clicking here
