The Federal Court has dismissed an application by Provide Nominees Pty Ltd (Provide Capital) to prevent 魅影直播鈥檚 further investigation of the entity.聽
Justice Rofe agreed with 魅影直播鈥檚 submission that Provide Capital鈥檚 application had no prospects of success.聽
Provide Capital鈥檚 application alleged that 魅影直播 did not have the state of mind required to conduct an investigation under the 魅影直播 Act 2001 (ASIC Act). Her Honour found that Provide鈥檚 argument was 鈥榠llogical and therefore that Provide Capital鈥檚 application had no reasonable prospect of success鈥�.聽
As part of the proceeding, Provide Capital issued a notice to 魅影直播 requesting documents relating to its investigation. Justice Rofe noted in her judgment that, while she did not need to decide on the notice due to the dismissal, 鈥榠f I were required to reach a conclusion, I would have set the notice aside on the basis that it is fairly characterised as 鈥渇ishing鈥� or 鈥渢rawling鈥� for documents鈥�.聽
Justice Rofe also ordered that Provide Capital pay 魅影直播鈥檚 costs.聽
ASIC Chair Joe Longo said, 鈥楾he outcome in this case demonstrates 魅影直播's commitment to taking action to prevent its investigations being delayed by baseless challenges to its powers鈥�.
Last month 魅影直播 also successfully defended an appeal in the Full Federal Court, in relation to order made by Justice O鈥橞ryan regarding Provide Nominees failing to respond to a request by 魅影直播 to produce documents (24-047MR).
Download
Background
On 29 March 2022 魅影直播 commenced a formal investigation in relation to Provide Capital and suspected false and misleading representations or misleading or deceptive conduct. Provide Capital鈥檚 application to prevent further investigation was filed on 13 December 2023 alleging 魅影直播 did not have reasonable grounds to suspect the contraventions under investigation because 魅影直播 had not prepared an interim report under section 16 of the 魅影直播 Act.鈥�
On 31 January 2024 魅影直播 filed an interlocutory application seeking the summary dismissal of Provide Capital鈥檚 proceedings stating that whether or not 魅影直播 formed the opinion set out in section 16 of in the course of an investigation cannot establish that 魅影直播 did not and could not hold, another state of mind required by section 13 of the 魅影直播 Act to make an investigation.鈥�
On 7 February 2024 as part of their proceedings Provide Capital filed a notice to produce seeking documents relating to 魅影直播鈥檚 decision to investigate the matter. On 9 February 2024 魅影直播 responded by filing an application to have Provide Capital鈥檚 NTP set aside.聽聽
The matter was heard in the Federal Court on 18 March 2024 and the summary judgment dismissing Provide鈥檚 application was passed down on 27 March 2024.