Coopers & Lybrand v. Australian Securities Commission [1994] FCA 863

Coopers & Lybrand v. Australian Securities Commission [1994] FCA 863

The ASC has both the function and necessary power under s.1292 of the Corporations Law, or alternatively under s.11(4) of the ASC Law, to investigate the conduct of registered company auditors relating to audits of building societies, as such audits require registration under federal law and the disciplinary reach covers duties imposed by any Australian law. Consequently, the notice for production under s.30 of the ASC Law was not invalid by reason of the grounds alleged.

Parties
Applicant/respondent: Coopers & Lybrand; Respondent/applicant: Australian Securities Commission
Jurisdiction
Australia
Judgment Date
17 November 1994
Procedural Posture
Judicial Review/application for Compliance Order / Preliminary Issue on Validity of Notice Under S.30 of ASC Act 1989
Outcome
Preliminary issue determined against Coopers & Lybrand; notice held valid as against grounds Cl, C2, and C3.
Legal Topics
Investigative Powers of the Australian Securities Commission, Registered Company Auditors—disciplinary Powers, Application of National Scheme Laws to Building Society Audits
Corporations Law Administrative Law Investigative Powers of the Australian Securities Commission Registered Company Auditors—disciplinary Powers Application of National Scheme Laws to Building Society Audits

Case Brief

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Parties

Coopers & Lybrand

Applicant/respondent

Australian Securities Commission

Respondent/applicant

Procedural Posture

Judicial Review/application for Compliance Order / Preliminary Issue on Validity of Notice Under S.30 of ASC Act 1989

Legal Issues

  1. 1 Whether ASC has functions and powers under s.1292 of the Corporations Law to investigate the conduct of registered company auditors in audits of building societies
  2. 2 Whether notice under s.30 of the ASC Act 1989 is valid when issued in relation to such audits
  3. 3 Whether Companies Auditors and Liquidators Disciplinary Board's powers under Part 9.3 extend to conduct relating to exempt bodies

Ratio Decidendi

The ASC has both the function and necessary power under s.1292 of the Corporations Law, or alternatively under s.11(4) of the ASC Law, to investigate the conduct of registered company auditors relating to audits of building societies, as such audits require registration under federal law and the disciplinary reach covers duties imposed by any Australian law. Consequently, the notice for production under s.30 of the ASC Law was not invalid by reason of the grounds alleged.

Court Disposition

Preliminary issue determined against Coopers & Lybrand; notice held valid as against grounds Cl, C2, and C3.

Orders

  • Declaration that the notice issued on 23 August 1994 by the ASC to Coopers & Lybrand under s.30 of the Australian Securities Commission Act 1989 is not invalid on the grounds alleged in paragraphs Cl, C2, and C3 of the application in Action No. SG 68 of 1994.
  • Both matters to be relisted for further directions.