ASIC v Christopher John Mapstone [2006] NSWSC 993

ASIC v Christopher John Mapstone [2006] NSWSC 993

The Court has no power under s 1324(4) of the Corporations Act to grant an interim injunction restraining the defendant from managing corporations because there is no serious question to be tried that would entitle ASIC to final injunctive relief on the evidence presented; there is no evidence of actual or proposed contravention by managing while disqualified. Even if such power existed, delay and absence of evidence of present risk to the public or creditors weighs against exercise of the Court's discretion to grant interlocutory relief.

Parties
Plaintiff: Australian Securities & Investments Commission; Defendant: Christopher John Mapstone
Jurisdiction
Australia
Judgment Date
14 September 2006
Procedural Posture
Application for Interlocutory Injunction / Interlocutory Judgment
Outcome
Interlocutory injunction refused; application dismissed with costs.
Legal Topics
Interlocutory Injunctions, Director Disqualification, Conduct Amounting to Breach of Directors' Duties, Powers of the Court Under Corporations Act S 1324
Corporations Law Interlocutory Injunctions Director Disqualification Conduct Amounting to Breach of Directors' Duties Powers of the Court Under Corporations Act S 1324

Case Brief

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Parties

Australian Securities & Investments Commission

Plaintiff

Christopher John Mapstone

Defendant

Procedural Posture

Application for Interlocutory Injunction / Interlocutory Judgment

Legal Issues

  1. 1 Whether the Court has power to grant an interim injunction restraining the defendant from managing corporations under s 1324 of the Corporations Act pending final determination
  2. 2 Whether there is a serious question to be tried that would justify the grant of such interlocutory relief
  3. 3 Whether, even if such power exists, the circumstances justify the exercise of discretion to grant the injunction

Ratio Decidendi

The Court has no power under s 1324(4) of the Corporations Act to grant an interim injunction restraining the defendant from managing corporations because there is no serious question to be tried that would entitle ASIC to final injunctive relief on the evidence presented; there is no evidence of actual or proposed contravention by managing while disqualified. Even if such power existed, delay and absence of evidence of present risk to the public or creditors weighs against exercise of the Court's discretion to grant interlocutory relief.

Court Disposition

Interlocutory injunction refused; application dismissed with costs.

Orders

  • Order that the interlocutory process filed on 21 July 2006 be dismissed with costs.