Australian Stock Exchange Ltd v McLachlan [2002] NSWCA 374

Australian Stock Exchange Ltd v McLachlan [2002] NSWCA 374

Rule 13.5.1(4) applies where an Affiliate who is a partner, officer, employee or securities representative of a Participating Organisation is charged in relation to conduct that is also charged against the Participating Organisation because the Affiliate's conduct is the conduct of the organisation or is deemed to be so under Rule 13.5.1(2). The charges against TBL and McLachlan were not one charge or one case for the purposes of that rule because they contained significant, non-colourable differences, including allegations concerning TBL's own conduct and conduct of others. The aggregate cap therefore did not prevent the Appeal Tribunal imposing a separate $100,000 fine on McLachlan, and...

Jurisdiction
Australia
Judgment Date
19 November 2002
Procedural Posture
Corporations Appeal Concerning Construction and Enforcement of ASX Business Rules Disciplinary Fine / Appeal From Orders of Santow J Dismissing an Amended Summons With Costs
Outcome
Appeal allowed; orders of Santow J set aside; judgment entered for the plaintiff in the sum of $100,000; defendant ordered to pay costs at first instance and on appeal.
Legal Topics
['asx Business Rules' 'affiliate and Participating Organisation Discipline' 'rule 13.5.1(4)' 'prohibited Conduct' 'construction of Disjunctive or Conjunctive Language' 'aggregate Fine Cap']
['corporations' 'securities Regulation' 'contract'] ['asx Business Rules' 'affiliate and Participating Organisation Discipline' 'rule 13.5.1(4)' 'prohibited Conduct' 'construction of Disjunctive or Conjunctive Language' 'aggregate Fine Cap']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations Appeal Concerning Construction and Enforcement of ASX Business Rules Disciplinary Fine / Appeal From Orders of Santow J Dismissing an Amended Summons With Costs

Legal Issues

  1. 1 ['Whether ASX Business Rule 13.5.1(4) capped aggregate fines at $100,000 where an Affiliate and a Participating Organisation were charged in relation to substantially overlapping conduct.' 'Whether the charges against Malcolm McLachlan and Thompson Brindal Ltd were one charge or one case for the purposes of Rule 13.5.1(4).' 'Whether the ASX was entitled to judgment for the $100,000 fine imposed on Malcolm McLachlan by the ASX Appeal Tribunal.']

Ratio Decidendi

Rule 13.5.1(4) applies where an Affiliate who is a partner, officer, employee or securities representative of a Participating Organisation is charged in relation to conduct that is also charged against the Participating Organisation because the Affiliate's conduct is the conduct of the organisation or is deemed to be so under Rule 13.5.1(2). The charges against TBL and McLachlan were not one charge or one case for the purposes of that rule because they contained significant, non-colourable differences, including allegations concerning TBL's own conduct and conduct of others. The aggregate cap therefore did not prevent the Appeal Tribunal imposing a separate $100,000 fine on McLachlan, and...

Court Disposition

Appeal allowed; orders of Santow J set aside; judgment entered for the plaintiff in the sum of $100,000; defendant ordered to pay costs at first instance and on appeal.

Orders

  • ['The appeal is allowed.' 'The orders of Santow J are set aside.' 'Judgment for the plaintiff in the sum of $100,000.' 'The defendant is to pay the costs of the plaintiff at first instance and in the Court of Appeal.']