Australian Securities and Investments Commission v Johnston [2009] FCA 1276

Australian Securities and Investments Commission v Johnston [2009] FCA 1276

The court found that Mr Johnston is central to ongoing ASIC and liquidation investigations into possible contraventions of the Corporations Act related to the Firepower group, and that interim orders restraining him from leaving Australia are necessary to protect the interests of aggrieved persons (investors and creditors), given the real risk that the investigation would be compromised if he departed.

Parties
Plaintiff: Australian Securities and Investments Commission; Defendant: Timothy Francis Johnston
Jurisdiction
Australia
Judgment Date
04 November 2009
Procedural Posture
Interlocutory Application / Interim Orders (ex Parte)
Outcome
Interim orders granted (ex parte) restraining the defendant from leaving Australia and requiring surrender of travel documents.
Legal Topics
Interim Injunctions, Director's Duties, Company Investigations, Travel Restraint Orders
Corporations Law Civil Procedure Interim Injunctions Director's Duties Company Investigations Travel Restraint Orders

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Parties

Australian Securities and Investments Commission

Plaintiff

Timothy Francis Johnston

Defendant

Procedural Posture

Interlocutory Application / Interim Orders (ex Parte)

Legal Issues

  1. 1 Whether interim orders should be made preventing Mr Johnston from leaving Australia under s 1323(1) of the Corporations Act 2001 (Cth)
  2. 2 Whether the circumstances justify interference with the defendant's right to travel in light of ongoing ASIC investigation

Ratio Decidendi

The court found that Mr Johnston is central to ongoing ASIC and liquidation investigations into possible contraventions of the Corporations Act related to the Firepower group, and that interim orders restraining him from leaving Australia are necessary to protect the interests of aggrieved persons (investors and creditors), given the real risk that the investigation would be compromised if he departed.

Court Disposition

Interim orders granted (ex parte) restraining the defendant from leaving Australia and requiring surrender of travel documents.

Orders

  • The requirement for initial service is dispensed with and the matter heard ex parte.
  • Defendant prohibited from leaving Australia without the Court's consent pending determination of the application.