Australian Securities Commission v Spencer, Michael Geoffrey [1997] FCA 971

Australian Securities Commission v Spencer, Michael Geoffrey [1997] FCA 971

The respondent was involved in a contravention of s 232(6) because he devised and implemented a scheme under which Harq Nominees Proprietary Limited assigned its valuable client register to the AMP Society without consideration in order to satisfy a director's personal debt, causing detriment to the company; in light of the respondent's acceptance, lack of dishonesty, mitigating circumstances, saving of further costs, and unlikelihood of reoffending, a penalty of $5,000 and fixed costs of $500 were appropriate.

Jurisdiction
Australia
Judgment Date
24 July 1997
Procedural Posture
Application Under S 1317 EA of the Corporations Law for a Civil Penalty Order and Declaration of Contravention of S 232(6) / Judgment and Orders on 24 July 1997; Application Allowed by Consent
Outcome
Declaration of contravention made; respondent ordered to pay a $5,000 penalty and $500 costs.
Legal Topics
['improper Use of Position' 'involvement in Contravention' 'civil Penalty Order' 'assignment of Company Asset Without Consideration' "directors' Duties"]
['corporations Law'] ['improper Use of Position' 'involvement in Contravention' 'civil Penalty Order' 'assignment of Company Asset Without Consideration' "directors' Duties"]

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Procedural Posture

Application Under S 1317 EA of the Corporations Law for a Civil Penalty Order and Declaration of Contravention of S 232(6) / Judgment and Orders on 24 July 1997; Application Allowed by Consent

Legal Issues

  1. 1 ["Whether the respondent was involved, within the meaning of s 79 of the Corporations Law, in a contravention of s 232(6) by devising and implementing a scheme causing Harq Nominees Proprietary Limited to assign its register of insurance clients to satisfy a director's personal debt." 'What penalty and costs orders were appropriate under s 1317EA of the Corporations Law.']

Ratio Decidendi

The respondent was involved in a contravention of s 232(6) because he devised and implemented a scheme under which Harq Nominees Proprietary Limited assigned its valuable client register to the AMP Society without consideration in order to satisfy a director's personal debt, causing detriment to the company; in light of the respondent's acceptance, lack of dishonesty, mitigating circumstances, saving of further costs, and unlikelihood of reoffending, a penalty of $5,000 and fixed costs of $500 were appropriate.

Court Disposition

Declaration of contravention made; respondent ordered to pay a $5,000 penalty and $500 costs.

Orders

  • ['Declare pursuant to s 1317EA(2) of the Corporations Law that the respondent has by the following "specified act" contravened s 232(6) of the Corporations Law in relation to Harq Nominees Proprietary Limited (in liquidation): In or about June 1995 Michael Geoffrey Spencer devised and implemented a scheme whereby a...