Ipswich City Developments being wound up, assets transferred to council

Ipswich City Council interim administrator Greg Chemello has gained the rights to act as sole shareholder representative of council-controlled business entities.

In accordance with the constitutions of four companies, Mr Chemello resolved at a special council meeting to remove former acting mayor Wayne Wendt as shareholder representative.

In relation to Ipswich City Properties Pty Ltd, Mr Chemello removed former councillors Paul Tully and Andrew Antoniolli as directors. Stuart Lummis and Gary Finnegan remain as non-executive directors of the company.

Three other companies are being wound up. As part of this process, Ipswich City Developments Pty Ltd has sold and transferred the majority of its remaining property and assets to council, including a dividend payment of $2.5 million on August 20, 2018.

Assets include the building of innovation hub, Fire Station 101.

ICD will now be placed into “members’ voluntary liquidation” – a process recommended by McGrath Nicol and approved by company directors.

While this does not mean the company is insolvent, it does mean William Harris and Anthony Connelly from McGrath Nicol will be able to manage the legalities of the company’s closure as the appointed liquidators.

Mr Chemello said a company must be solvent to undertake this process and declarations of solvency signed by ICD directors on August 20 have been submitted to ASIC as required by company law.

“Liquidators will now tie off loose ends to de-register ICD, including the distribution of all remaining assets back to council,” Mr Chemello said.

“It could take a few months to lodge formal deregistration with ASIC.”

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