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ARTICLE · 20 APRIL 2024

Ponzi-scheme company liquidators given time to investigate scam 'winners'

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Complex and multinational schemes are likely to mean that liquidators require extra time to commence proceedings.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Matthew Critchley
Matthew Critchley
Nicola Ziaras
Nicola Ziaras
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In this week's TGIF, we explore Re Mirror Trading (Pty) Ltd (in liq) [2024] FCA 305.

Key Takeaways

  • Going forward, the complexity and scale of investigating multinational schemes will be a strong factor in granting liquidators an extension of time to pursue voidable transactions.

  • With the increasing presence of investment scams in Australia, 'winners' of international Ponzi-type schemes may increasingly become the subject of liquidators' investigations into voidable transactions.

  • Liquidators investigating potential voidable transactions may not be required to serve or give notice to potential defendants where investigations to identify all defendants are ongoing.

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