The Federal Court has ordered in an “interlocutory application to be returnable immediately” that a freezing order be made against the first and second respondents (and certain related corporations and persons) on the following terms:
(a) they must not remove from Australia or in any way dispose of, deal with or diminish the value of any of their assets in Australia up to the unencumbered value of AUD$30,342,074.65 (“the relevant amount”); and
(b) if the unencumbered value of Australian assets exceeds the relevant amount, they may remove any of those assets from Australia or dispose of or deal with them or diminish their value, so long as the total unencumbered value of their Australian assets still exceeds the relevant amount. However, the order was subject to exceptions for paying ordinary living expenses or tax liabilities etc.
Moreover, the orders emphasised that any breach of the order by way of (a) refusal or neglect to do any act within the time specified, or (b) disobeying the order by doing an act which the order refrained the respondents from doing, would render the respondents to be liable to imprisonment, sequestration of property or other punishment.
Likewise the orders provided that any other person who knew of the order and did anything which resulted in a breach could be similarly punished.
In addition, the orders required that the respondents at or before the further hearing on the Return Date inform the Deputy Commissioner in writing of all their assets on a world-wide basis – giving their value, location and details (including any mortgages, charges or other encumbrances) and the extent of their interest in the assets – but subject to any rights against self-incrimination.
(DCT v Seabrooke [2012] FCA 1158, Federal Court, Siopis J, 23 October 2012.)
[LTN 207, 25/10]