Birdseye v Companies Auditors & Liquidators Disciplinary Board [2002] FCA 280

Birdseye v Companies Auditors & Liquidators Disciplinary Board [2002] FCA 280

Because Mr Birdseye was an undischarged bankrupt, he was disqualified from managing corporations under Part 2D.6. Section 1292(7) therefore required cancellation of his auditor registration and gave the Board and the Tribunal no discretion. A proposed or even granted application under s 206G could only permit management of a particular corporation or class of corporations and would not remove the general disqualification. Any possible error about the temporal scope of the Tribunal's review could not affect the result. The discharge from bankruptcy after the Tribunal's decision did not make the proceeding moot because the cancellation decision remained effective and binding.

Jurisdiction
Australia
Judgment Date
19 March 2002
Procedural Posture
Appeal From a Decision of the Administrative Appeals Tribunal Affirming a Decision of the Companies Auditors and Liquidators Disciplinary Board Cancelling the Applicant's Registration as an Auditor / Federal Court Appeal on a Question of Law
Outcome
Application dismissed with costs.
Legal Topics
['cancellation of Auditor Registration' 'disqualification From Managing Corporations' 'undischarged Bankrupt' 'administrative Appeals Tribunal Review' 'permission to Manage a Corporation or Class of Corporations' 'mootness']
['corporations Law' 'administrative Law' 'bankruptcy'] ['cancellation of Auditor Registration' 'disqualification From Managing Corporations' 'undischarged Bankrupt' 'administrative Appeals Tribunal Review' 'permission to Manage a Corporation or Class of Corporations' 'mootness']

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Procedural Posture

Appeal From a Decision of the Administrative Appeals Tribunal Affirming a Decision of the Companies Auditors and Liquidators Disciplinary Board Cancelling the Applicant's Registration as an Auditor / Federal Court Appeal on a Question of Law

Legal Issues

  1. 1 ["Whether the Administrative Appeals Tribunal erred by considering whether the Board's decision was correct or preferable at the time it was made rather than by reference to material before the Tribunal." "Whether s 1292(7) of the Corporations Law gave the Board or Tribunal any discretion not to cancel an auditor's registration once satisfied that the auditor was disqualified from managing corporations under Part 2D.6." 'Whether an application or order under s 206G permitting participation in management of particular corporations or classes of corporations would prevent the applicant being a person disqualified from managing corporations under Part 2D.6.' "Whether the proceeding was moot because the applicant had been discharged from bankruptcy after the Tribunal's decision."]

Ratio Decidendi

Because Mr Birdseye was an undischarged bankrupt, he was disqualified from managing corporations under Part 2D.6. Section 1292(7) therefore required cancellation of his auditor registration and gave the Board and the Tribunal no discretion. A proposed or even granted application under s 206G could only permit management of a particular corporation or class of corporations and would not remove the general disqualification. Any possible error about the temporal scope of the Tribunal's review could not affect the result. The discharge from bankruptcy after the Tribunal's decision did not make the proceeding moot because the cancellation decision remained effective and binding.

Court Disposition

Application dismissed with costs.

Orders

  • ['The application be dismissed.' 'The applicant pay the costs of the respondents.']