A meeting had been scheduled for March 30 for creditors to vote on whether to liquidate the company or accept a deed of company arrangement proposed by Storm founders Emmanuel and Julie Cassimatis.
But Federal Court judge John Logan agreed to an Australian Securities and Investments Commission (ASIC) application to have the north Queensland-based firm wound up.
Storm Financial collapsed in January with debts of more than $70 million, leaving investors with huge losses.
Storm Financial collapsed in January with debts of more than $70 million, leaving investors with huge losses.
Storm was ordered to pay costs to the administrators and receivers but not ASIC, which did not request costs.
A creditors' meeting planned for next Monday 30 in Brisbane will not now go ahead.
The court this week heard the Storm founders published a misleading information memorandum on their website.
ASIC's lawyers argued Emmanuel and Julie Cassimatis' proposed deed of company arrangement could protect the couple from financial liability and not deliver the funds to former creditors that liquidation would.
A spokesman for the Commonwealth Bank after the judgment was handed down said the court had confirmed ASIC's position and criticism of the Cassimatis' behaviour.
"The Commonwealth Bank believed that any deed of company arrangement would not have helped any of the Storm Financial clients or creditors,'' the spokesman said.
Neither of Storm's founders was in court for the judgment.
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