Australian Securities and Investments Commission v Vizard [2005] FCA 1037 (including summary)

Australian Securities and Investments Commission v Vizard [2005] FCA 1037 (including summary)

The defendant seriously contravened s 232(5) and s 183(1) of the Corporations Law by deliberately and dishonestly using highly confidential Telstra board information obtained as a director to trade in Sausage, Computershare and Keycorp shares for personal and family advantage. Although his admissions, cooperation, contrition and public disgrace justified a reduction in penalty, the gravity of the breach of trust and the need for general deterrence required pecuniary penalties totalling $390,000 and a ten-year disqualification from managing corporations.

Jurisdiction
Australia
Judgment Date
28 July 2005
Procedural Posture
Civil Penalty Proceeding Under the Corporations Law / Penalty and Disqualification Following Admitted Contraventions
Outcome
Contraventions established; pecuniary penalties and disqualification to be imposed; plaintiff directed to bring in short minutes of orders within 14 days.
Legal Topics
["directors' Duties" 'improper Use of Confidential Information' 'civil Penalties' 'disqualification From Managing Corporations' 'general Deterrence' 'white Collar Crime']
['corporations Law'] ["directors' Duties" 'improper Use of Confidential Information' 'civil Penalties' 'disqualification From Managing Corporations' 'general Deterrence' 'white Collar Crime']

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Procedural Posture

Civil Penalty Proceeding Under the Corporations Law / Penalty and Disqualification Following Admitted Contraventions

Legal Issues

  1. 1 ['Whether the defendant contravened s 232(5) and s 183(1) of the Corporations Law by using confidential information acquired as a Telstra director to trade shares for the advantage of CTI, Brigham, himself and his family.' 'What pecuniary penalties should be imposed for the admitted serious contraventions.' 'Whether a disqualification order should be made and, if so, for what period.']

Ratio Decidendi

The defendant seriously contravened s 232(5) and s 183(1) of the Corporations Law by deliberately and dishonestly using highly confidential Telstra board information obtained as a director to trade in Sausage, Computershare and Keycorp shares for personal and family advantage. Although his admissions, cooperation, contrition and public disgrace justified a reduction in penalty, the gravity of the breach of trust and the need for general deterrence required pecuniary penalties totalling $390,000 and a ten-year disqualification from managing corporations.

Court Disposition

Contraventions established; pecuniary penalties and disqualification to be imposed; plaintiff directed to bring in short minutes of orders within 14 days.

Orders

  • ['Within 14 days the plaintiff bring in short minutes of orders to give effect to these reasons.' 'Declarations that the Corporations Law has been contravened.' 'Pecuniary penalties totalling $390,000 for the contraventions.' 'The defendant be disqualified for ten years.' "The defendant pay ASIC's costs of the...