Chye v Australian Securities and Investments Commission [2012] FCA 1405

Chye v Australian Securities and Investments Commission [2012] FCA 1405

The applicant failed to establish that he is a person who can be relied upon to honour the obligations and responsibilities of a director in a timely and appropriate manner, in light of his irresponsible conduct regarding his Malaysian bankruptcy and significant undisputed debts. The legislative policy of protecting the public outweighs any hardship to the applicant, and no exceptional circumstances warrant an exception under s 206G.

Parties
Applicant: Kit Foo Chye; Intervener: Australian Securities and Investments Commission
Jurisdiction
Australia
Judgment Date
16 November 2012
Procedural Posture
Corporations Application for Leave by a Disqualified Director / Judgment After Contested Hearing
Outcome
Application dismissed
Legal Topics
Director Disqualification, Leave to Manage Corporation, Bankruptcy and Director Responsibility
Corporations Law Director Disqualification Leave to Manage Corporation Bankruptcy and Director Responsibility

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Parties

Kit Foo Chye

Applicant

Australian Securities and Investments Commission

Intervener

Procedural Posture

Corporations Application for Leave by a Disqualified Director / Judgment After Contested Hearing

Legal Issues

  1. 1 Whether the applicant should be granted leave under s 206G of the Corporations Act 2001 (Cth) to manage and be reappointed as a director of a corporation despite being an undischarged bankrupt in Malaysia

Ratio Decidendi

The applicant failed to establish that he is a person who can be relied upon to honour the obligations and responsibilities of a director in a timely and appropriate manner, in light of his irresponsible conduct regarding his Malaysian bankruptcy and significant undisputed debts. The legislative policy of protecting the public outweighs any hardship to the applicant, and no exceptional circumstances warrant an exception under s 206G.

Court Disposition

Application dismissed

Orders

  • The application be dismissed.
  • The applicant pay the costs of the intervener.