Deemster critical of investment firm in judgement

Deemster Doyle has criticised the management of a series of Isle of Man-based funds and companies, in a judgement against them.

The Financial Supervision Commission had applied to the court to wind up six entities connected to South African investment firm the Louis Group on the Island.

The FSC argued it was necessary in the public interest and to safeguard the interests of creditors, while the Louis Group argued they should not be wound up.

But in a judgement, Deemster Doyle said he was concerned by the group’s responses to inquiries from the FSC, saying if there had been wrongdoing those responsible needed to be brought to justice.

Deemster Doyle said he was unimpressed by a lack of financial records and documentation, adding the evidence before the court didn’t instil confidence in the past or future conduct and management of the group.

He said if there was nothing to hide and the companies were acting responsibly they would have fully co-operated and assisted – but they didn’t.

He went on to say the companies should be wound up because it would be the only way of discovering their true position, and protecting the rights of those involved.

Deemster Doyle denied the requests to have the winding-up orders set aside.