Round robin transactions that create no economic activity and are designed solely to generate tax deductions constitute sham transactions warranting winding up on the just and equitable ground. The public interest in investor protection and enforcement of the Corporations Act outweighs potential prejudice to shareholders of solvent companies. Where managed investment schemes are wound up, the operating companies should ordinarily also be wound up to avoid sterile arguments about powers and facilitate effective administration. No adverse inference may be drawn from a witness's claim of privilege against self-incrimination, but a Jones v Dunkel inference may be drawn from the failure to call an available material witness.
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