Searle v Australian Securities & Investments Commission [2006] FCA 208

Searle v Australian Securities & Investments Commission [2006] FCA 208

The Court granted leave because, although the applicant had been disqualified under section 206B after convictions involving false statements, the evidence showed he was responsible, diligent and capable, had acted on legal advice in continuing to manage the companies, was genuinely contrite and remorseful, had an otherwise clean and good record, and the companies, shareholders, creditors and employees would be best served by allowing him to resume management under agreed conditions. ASIC did not oppose leave and considered conditional orders appropriate.

Jurisdiction
Australia
Judgment Date
23 February 2006
Procedural Posture
Application for Leave to Manage Corporations Under Section 206 G of the Corporations Act 2001 (cth) / Final Hearing and Orders
Outcome
Leave granted to the applicant under section 206G of the Corporations Act 2001 (Cth) to manage the Transtar Group, subject to conditions; liberty to apply; no order as to costs by agreement.
Legal Topics
['leave to Manage a Corporation' 'disqualification From Managing Corporations' 'conditions on Leave' "directors' Duties and Company Management"]
['corporations'] ['leave to Manage a Corporation' 'disqualification From Managing Corporations' 'conditions on Leave' "directors' Duties and Company Management"]

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Procedural Posture

Application for Leave to Manage Corporations Under Section 206 G of the Corporations Act 2001 (cth) / Final Hearing and Orders

Legal Issues

  1. 1 ['Whether the Court should grant the applicant leave under section 206G of the Corporations Act 2001 (Cth) to manage the Transtar Group notwithstanding his disqualification under section 206B.' 'Whether appropriate conditions should be imposed on any grant of leave.' "Whether the applicant's conduct, offences, character, and the interests of the companies, shareholders, creditors, employees and the public justified an exception to the statutory disqualification."]

Ratio Decidendi

The Court granted leave because, although the applicant had been disqualified under section 206B after convictions involving false statements, the evidence showed he was responsible, diligent and capable, had acted on legal advice in continuing to manage the companies, was genuinely contrite and remorseful, had an otherwise clean and good record, and the companies, shareholders, creditors and employees would be best served by allowing him to resume management under agreed conditions. ASIC did not oppose leave and considered conditional orders appropriate.

Court Disposition

Leave granted to the applicant under section 206G of the Corporations Act 2001 (Cth) to manage the Transtar Group, subject to conditions; liberty to apply; no order as to costs by agreement.

Orders

  • ["Grants leave to the applicant pursuant to section 206G of the Corporations Act 2001 (Cth) to manage Transtar Express Pty Ltd ACN 001 150 563, Kagua Pty Ltd ACN 001 130 856, Edgely Pty Ltd ACN 089 763 646 and Nitestar Express Pty Ltd ACN 103 144 378 ('the Transtar Group')." 'The grant of leave in Order 1 is...