Stokes, in the matter of Padbury Mining Limited [2016] FCA 1000

Stokes, in the matter of Padbury Mining Limited [2016] FCA 1000

The s 206G(1) application was not invalid despite non-compliance with s 206G(2) because it was just and equitable to make a declaration under s 1322(4)(a) and no substantial injustice had been or was likely to be caused. Leave to manage G W Stokes Pty Ltd was appropriate because the proposed management was confined to the company acting as trustee of Mr Stokes' superannuation fund, those activities were different from managing Padbury Mining Limited as a listed public company, the public interest considerations underlying the disqualification did not apply in the same way, refusal would still leave Mr Stokes involved as a joint trustee, and ASIC did not oppose the leave.

Jurisdiction
Australia
Judgment Date
19 August 2016
Procedural Posture
Application Under S 206 G(1) of the Corporations Act 2001 (cth) for Leave to Manage a Corporation and Application Under S 1322(4)(a) for a Declaration / Judgment on Application After Disqualification Order Under S 206 C
Outcome
Application granted.
Legal Topics
['disqualification From Managing Corporations' 'leave to Manage a Corporation' 'non Compliance With Notice Requirement' 'validation of Procedural Non Compliance' 'corporate Trustee of Superannuation Fund']
['corporations Law'] ['disqualification From Managing Corporations' 'leave to Manage a Corporation' 'non Compliance With Notice Requirement' 'validation of Procedural Non Compliance' 'corporate Trustee of Superannuation Fund']

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Procedural Posture

Application Under S 206 G(1) of the Corporations Act 2001 (cth) for Leave to Manage a Corporation and Application Under S 1322(4)(a) for a Declaration / Judgment on Application After Disqualification Order Under S 206 C

Legal Issues

  1. 1 ['Whether the application under s 206G(1) was invalid by reason of non-compliance with the notice requirement in s 206G(2) of the Corporations Act 2001 (Cth).' 'Whether Gary Wayne Stokes should be granted leave to manage G W Stokes Pty Ltd on condition that it act only as trustee of the G W Stokes Super Fund.']

Ratio Decidendi

The s 206G(1) application was not invalid despite non-compliance with s 206G(2) because it was just and equitable to make a declaration under s 1322(4)(a) and no substantial injustice had been or was likely to be caused. Leave to manage G W Stokes Pty Ltd was appropriate because the proposed management was confined to the company acting as trustee of Mr Stokes' superannuation fund, those activities were different from managing Padbury Mining Limited as a listed public company, the public interest considerations underlying the disqualification did not apply in the same way, refusal would still leave Mr Stokes involved as a joint trustee, and ASIC did not oppose the leave.

Court Disposition

Application granted.

Orders

  • ['This application under s 206G(1) of the Corporations Act 2001 (Cth) is not invalid by reason of non-compliance with s 206G(2).' 'Gary Wayne Stokes have leave to manage G W Stokes Pty Ltd (ACN 160 938 714) on the condition that G W Stokes Pty Ltd not engage in activities other than as trustee of the G W Stokes...