Australian Securities and Investments Commission v Beekink [2007] FCAFC 7

Australian Securities and Investments Commission v Beekink [2007] FCAFC 7

The trial judge failed to take into account the need for general deterrence when refusing to disqualify Mr Beekink and when fixing a pecuniary penalty. The pecuniary penalties imposed were manifestly inadequate given the seriousness of the contraventions and the professional standing of the respondents. The Court...

Source-derived case information.

Parties
Appellant: Australian Securities and Investments Commission; First Respondent: Peter Cornelius Beekink; Second Respondent: Hersch Solomon Majteles; Third Respondent: Gregory Phillip Gaunt
Jurisdiction
Australia
Judgment Date
07 February 2007
Procedural Posture
Civil Appeal / On Appeal From a Single Judge of the Federal Court
Outcome
Appeal allowed
Legal Topics
Director's Duties, Civil Penalties, Managed Investment Schemes, Disqualification of Directors, General Deterrence
Corporations Law Director's Duties Civil Penalties Managed Investment Schemes Disqualification of Directors General Deterrence

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Parties

Australian Securities and Investments Commission

Appellant

Peter Cornelius Beekink

First Respondent

Hersch Solomon Majteles

Second Respondent

Gregory Phillip Gaunt

Third Respondent

Procedural Posture

Civil Appeal / On Appeal From a Single Judge of the Federal Court

Legal Issues

  1. 1 Whether the penalties imposed at first instance for breaches of directors' duties under the Corporations Act were manifestly inadequate
  2. 2 Whether the primary judge erred in failing to order the disqualification of Mr Beekink from managing corporations under s 206C of the Corporations Act

Ratio Decidendi

The trial judge failed to take into account the need for general deterrence when refusing to disqualify Mr Beekink and when fixing a pecuniary penalty. The pecuniary penalties imposed were manifestly inadequate given the seriousness of the contraventions and the professional standing of the respondents. The Court allowed the appeal, imposed a 12 month disqualification on Mr Beekink, and increased the pecuniary penalties for all respondents.

Court Disposition

Appeal allowed

Orders

  • The appeal be allowed.
  • Order pursuant to s 206C(1) of the Act that the First Defendant be disqualified from managing corporations for a period of 12 months from the date of this order.