Harrison, Michael Jeffrey [1998] FCA 302

Harrison, Michael Jeffrey [1998] FCA 302

Section 229(3) empowers the Court to grant leave in general terms or by reference to a described class of corporations, but because the statutory restriction protects the public and corporate stakeholders, general leave will only be appropriate in rare cases. On the facts, the applicant's offence was serious but not of the most serious kind, he was unlikely to reoffend, a substantial time had elapsed, and the risks were limited for not-for-profit community service organisations, government appointments, and his family company subject to an indemnity. Leave was not appropriate for unidentified client corporations because their businesses, size, management structures and risks were unknown.

Jurisdiction
Australia
Judgment Date
06 March 1998
Procedural Posture
Application Pursuant to S.229 of the Corporations Law for Leave to Be Involved in the Management of a Corporation or Corporations / Reasons for Judgment and Orders
Outcome
Application granted in part.
Legal Topics
['director Disqualification' 'leave to Manage Corporations' 'general Orders Permitting Involvement in Management' "breach of Directors' Duties"]
['corporations Law'] ['director Disqualification' 'leave to Manage Corporations' 'general Orders Permitting Involvement in Management' "breach of Directors' Duties"]

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Procedural Posture

Application Pursuant to S.229 of the Corporations Law for Leave to Be Involved in the Management of a Corporation or Corporations / Reasons for Judgment and Orders

Legal Issues

  1. 1 ['Whether s.229(3) of the Corporations Law empowers the Court to make a general order permitting the applicant to be involved in the management of corporations not specifically identified.' 'Whether leave should be granted for the applicant to be involved in the management of not-for-profit community service organisations or corporations to which he is appointed by ministerial or other government appointment.' 'Whether leave should be granted for the applicant to be involved in the management of Winning Sales Systems Pty Ltd.' 'Whether leave should be granted at large for the applicant to be involved in the management of client corporations in connection with his sales and marketing consultancy work.']

Ratio Decidendi

Section 229(3) empowers the Court to grant leave in general terms or by reference to a described class of corporations, but because the statutory restriction protects the public and corporate stakeholders, general leave will only be appropriate in rare cases. On the facts, the applicant's offence was serious but not of the most serious kind, he was unlikely to reoffend, a substantial time had elapsed, and the risks were limited for not-for-profit community service organisations, government appointments, and his family company subject to an indemnity. Leave was not appropriate for unidentified client corporations because their businesses, size, management structures and risks were unknown.

Court Disposition

Application granted in part.

Orders

  • ['Leave to the applicant pursuant to s.229(3) of the Corporations Law to be involved in the management of Winning Sales Systems Pty Ltd ("the company") subject to the condition that he enter into a deed of indemnity between himself and the company whereby he agrees upon demand either of the company or its successors...