This case study is based on Environinvest Limited (Receivers and Managers Appointed)(in liquidation) vs Roger Neil Pescott & Ors (2012) and Environinvest Limited (Receivers and Managers Appointed) (in liquidation) vs Blackburne Pty Ltd (in liquidation) (2012).
Environinvest Ltd was a corporation that manages investment schemes in the field of agriculture (Bloomberg Businessweek, 2014). The corporation was responsible in developing various agriculture investments under the care of agriculture specialist, such as eucalypt plantations and hydroponic tomatoes (Korda Mentha, 2014). Investors would invest in these schemes in order to receive tax deductions (Lonie, 2009). In 2008, the corporation was voted into liquidation.…show more content… In reality, the company did not receive a single payment from Pescott, as they have made the transaction in the books by cancelling a part of the company’s debt to Pescott.
Next are the Options proceedings. This proceeding relates more to the transactions made by the directors for their own benefits as well for the ones associated to them. The specific parties in this proceedings are; Environinvest Ltd, James Patrick Downey the liquidator of the company, and S.T.Y. (Afforestation) Pty Ltd as the plaintiffs. Roger Neil Pescott, Caroline Pescott, Euan Pescott, Blackburne Pty Ltd, Brabourne Pty Ltd, Mt Ross Pastoral Pty Ltd, Eurambeen Pty Ltd, Maridale (Victoria) Pty Ltd, Carnac Pty Ltd, Clive Randal Dossetor and Grant Anthony Robertson as the list of defendants.
One of the claims in this proceeding is the BEP Blue Gum Project which was formerly owned by Euan Pescott, brother to Roger Pescott. In 1999, Euan Pescott and BEP Management Pty Ltd entered into an agreement that requires BEP to establish and manage a eucalyptus plantation on the land provided by Euan Pescott. As a result, Euan Pescott had made a total payment of $ 1,076,253.46 to BEP throughout the years. In 2007, the directors of Environinvest decided to purchase the project by creating a document which is alleged to bear the false date of 1st July 1999. It acts as a false documentation of purchase, and with that Euan Pescott transferred the plantation to S.T.Y.A with the total amount