High Court determines, in relation to the winding up of an investment company where funds had been misappropriated: (a) that funds in pooled bank accounts, where there was a shortfall arising from the misappropriation, should be distributed to the investors pro rata; (b) that monies recovered from funds into which misappropriated monies had been paid should be paid to the credit of the pooled bank accounts and distributed pro rata; and (c) that no order should be made permitting the liquidator to have recourse to client assets in relation to his own expenses, but that a future application could be made if assets were exhausted without discharge of the expenses.
Company law - application by liquidator - directions - complex litigation - distribution of monies to the credit of pooled bank accounts where there was a shortfall by reason of misappropriation - distribution of monies recovered from funds into which misappropriated monies had been paid - Regulations 157 and 158 of the European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. 60 of 2007) - history of litigation and winding up of company - private company authorised to operate as investment firm - delays in winding up - client assets - distribution of pooled bank accounts - €6.5 million available for distribution - modes of distribution - how misappropriations took place - transfer of misappropriated monies to property funds - MiFID costs - overriding objective to protect client assets.