Having reported about Justice David Batts ruling in the Supreme Court last Friday (May 31) regarding Stocks and Securities Limited (SSL), which is being wound down, Our Today takes a closer look at the judgement.

The temporary manager appointed by the Financial Services Commission, (FSC) to wind up operations of SSL, Ken Tomlinson is in the process of handing over operations to the trustee appointed by the principals of the company. 

SSL, which is the subject of a multibillion-dollar fraud investigation, has been granted leave to voluntarily wind up operations under the supervision of the court.

Friday’s judgement delivered is as follows:

1. The appointment of Caydion Campbell of Phoenix Restructuring Advisory and Insolvency Services Enterprise as trustee of SSL for the purposes of winding up and reorganisation is and was at all material times valid.

2. Injunction granted on January 25, 2023, discharged and the temporary management put in place by the SSL shall cease with immediate effect and be discharged.

3. Defendants (SSL and Campbell) are at liberty to pursue recovery of damages pursuant to FSC’s undertaking as to damages.

4. Winding up of SSL lawfully commenced on January 16, 2023, shall recommence but is subject to the supervision of the court with liberty to creditors, contributors and all relevant interested parties to apply to the court and be subject to such further or other conditions as the court may order.

5. Campbell shall continue to act as trustee in the winding up unless or until the creditors determine otherwise.

6. The temporary manager and FSC shall provide the trustee with all reports and other pertinent information in their possession as well as all relevant information he may request in furtherance of his duties.

7. Trustee shall in accordance with Section 282 of the Companies Act apply to the Supervisor of Insolvency for an assignment in accordance with the Insolvency Act. 

8. Trustee is ordered and directed to invite all known potential and contingent claimants and/or creditor of SSL to submit proof of claims for adjudication and proving by the trustee and/or for their admission or voting at a meeting and/or ranking for distribution and/or payment or for the reorganisation of the business or otherwise. 

9. There is a stay of all pending or other proceedings against SSL and no suit, action, or other proceedings including criminal proceedings shall proceed with or commence against SSL unless the permission of the court is obtained.

10. The trustee shall submit a report to the court within 90 days of the order and the court will convene on September 26, 2024, at 10:00 am in open court to consider any applications. 

11. FSC to pay the legal costs of SSL and Campbell