Cox v Tomat [1972] HCA 10

Cox v Tomat [1972] HCA 10

A provision (s.15(2) of the Road Maintenance (Contribution) Act 1965 (WA)) that treats all directors of a company as 'owners' liable for statutory charges arising from the use of the company's vehicles on WA roads lacks sufficient territorial nexus, in respect of directors who had no further involvement than their directorship and no physical or controlling connexion with WA; therefore, applying the Act to out-of-State directors in such cases is beyond the legislative competence of the State.

Jurisdiction
Australia
Procedural Posture
Special Leave to Appeal (criminal/prosecution for Regulatory Offence) / High Court; Appeal From the Full Court of the Supreme Court of Western Australia
Outcome
Appeal dismissed with costs
Legal Topics
['territorial Competence of State Legislatures' "directors' Liability for Company Offences" 'extraterritorial Operation of Statutes' 'corporations Law']
['constitutional Law' 'statutory Interpretation'] ['territorial Competence of State Legislatures' "directors' Liability for Company Offences" 'extraterritorial Operation of Statutes' 'corporations Law']

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Procedural Posture

Special Leave to Appeal (criminal/prosecution for Regulatory Offence) / High Court; Appeal From the Full Court of the Supreme Court of Western Australia

Legal Issues

  1. 1 ['Whether s.15(2) of the Road Maintenance (Contribution) Act 1965 (WA) validly imposes liability on out-of-State directors for charges incurred by company-owned vehicles using WA roads' 'Whether mere directorship gives sufficient territorial connexion to support such liability']

Ratio Decidendi

A provision (s.15(2) of the Road Maintenance (Contribution) Act 1965 (WA)) that treats all directors of a company as 'owners' liable for statutory charges arising from the use of the company's vehicles on WA roads lacks sufficient territorial nexus, in respect of directors who had no further involvement than their directorship and no physical or controlling connexion with WA; therefore, applying the Act to out-of-State directors in such cases is beyond the legislative competence of the State.

Court Disposition

Appeal dismissed with costs

Orders

  • ['Special leave granted.' 'Appeal dismissed with costs.']