Continental Coal was put into liquidation in May.
The Australian Securities and Investments Commission obtained the asset preservation orders as part of its investigation, including looking into the use of investors’ subscription monies at a time when they were required by law to be held in trust.
ASIC sought orders pending the outcome of its investigation with the aim of preserving the interests of investors.
According to ASIC, Flegg consented to the orders on the basis that here rights were reserved and with no admission of liability or wrongdoing.
Western Australia-based Continental Coal director Peter Landau consented to interim asset preservation orders over his personal assets and the assets of Okap Ventures Pty Ltd and Doull Holdings Pty Ltd, companies he is sole director of, in December.
Landau consented to the orders on the basis the defendants’ rights were reserved and that they did not accept the orders should have been made.
Continental Coal had been mining coal in Africa.
ASIC applied to the Federal Court for the appointment of a liquidator and McGrath Nichol was appointed in May.
In its application ASIC alleged Continental Coal was not being properly managed and that the company had been involved in multiple contraventions of corporations law including:
- a failure to comply with its continuous disclosure obligations
- a failure to lodge its audited accounts and convene its annual general meeting
- a failure to appoint a second Australian resident director
- a failure to hold application monies received under a rights issue on trust
- insolvency.
