In a continuing Federal Court action against the Greenstar group of companies and associated directors, the Australian Competition and Consumer Commission has obtained, with the consent of the parties, a Federal Court order to freeze the assets of the companies for non-related business expenditure.
It also requires the companies to allow ACCC officers to inspect their accounts.
The freezing order, known as a mareva injunction, was granted against Greenstar Co-operative Ltd, Greenstar Management Pty Ltd, and one of its directors, Mr Kevin Robert Smith.
These orders follow interim injunctions granted by the Court on 14 June 2001. They will remain in place until the matter is determined at trial or any earlier order is consented to by the parties. The orders prevent the companies and Mr Smith from:
- utilising or in any way disposing of the companies or Mr Smith's financial or physical assets, whether the property is held within or outside the jurisdiction
- taking further credit card deductions from members who had withdrawn their authority to do so; and
- spending any money held in their National Australia Bank or BankWest accounts; without the prior written consent of the applicant.
The ACCC sought the orders to ensure the funds and assets of the companies are protected to the benefit of consumers currently involved in the scheme until the matter is resolved.