Australian Securities and Investments Commission v Mitchell (No 3) [2020] FCA 1604

Australian Securities and Investments Commission v Mitchell (No 3) [2020] FCA 1604

The Court found Mr Mitchell breached s 180(1) of the Corporations Act on three occasions by sharing internal deliberations of Tennis Australia Ltd with Seven Network representatives, conduct which was serious due to the degree of departure from the standard of care and diligence expected of a director, and imposed a moderate pecuniary penalty of $90,000 and made declarations. No order as to costs was made due to the contestable event of success.

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: Harold Charles Mitchell; Second Defendant: Stephen James Healy
Jurisdiction
Australia
Judgment Date
04 November 2020
Procedural Posture
Civil Penalty Proceeding / Penalty and Costs Determination After Declaration of Contravention
Outcome
Declarations of contravention made; pecuniary penalty imposed upon Mr Mitchell; no order as to costs between ASIC and Mr Mitchell.
Legal Topics
Director's Duties, Pecuniary Penalty, Care and Diligence, Civil Penalty, Declaration of Contravention, Costs
Corporations Law Director's Duties Pecuniary Penalty Care and Diligence Civil Penalty Declaration of Contravention Costs

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Parties

Australian Securities and Investments Commission

Plaintiff

Harold Charles Mitchell

First Defendant

Stephen James Healy

Second Defendant

Procedural Posture

Civil Penalty Proceeding / Penalty and Costs Determination After Declaration of Contravention

Legal Issues

  1. 1 Whether Mr Mitchell contravened s 180(1) of the Corporations Act 2001 (Cth)
  2. 2 Whether the contraventions were 'serious' under s 1317G(1)(b)(iii)
  3. 3 Appropriate pecuniary penalty for the contraventions

Ratio Decidendi

The Court found Mr Mitchell breached s 180(1) of the Corporations Act on three occasions by sharing internal deliberations of Tennis Australia Ltd with Seven Network representatives, conduct which was serious due to the degree of departure from the standard of care and diligence expected of a director, and imposed a moderate pecuniary penalty of $90,000 and made declarations. No order as to costs was made due to the contestable event of success.

Court Disposition

Declarations of contravention made; pecuniary penalty imposed upon Mr Mitchell; no order as to costs between ASIC and Mr Mitchell.

Orders

  • Declaration pursuant to s 1317E(1) of contraventions by Mr Mitchell of s 180(1) of the Corporations Act 2001 (Cth) on three occasions.
  • Mr Mitchell to pay a pecuniary penalty of $90,000 to the Commonwealth of Australia.