In the Matter of the Corporations Law In the Matter of Shneider, Stanley [1996] FCA 1064

In the Matter of the Corporations Law In the Matter of Shneider, Stanley [1996] FCA 1064

Although there was no reasonable likelihood of Mr Shneider re-offending and no risk to any relevant public interest if some relaxation were permitted, there was no real need for him to be a director of Tour Queensland Pty Ltd and his convictions were recent and connected with management of a public company. Section 229(3) permits leave only in relation to a specific corporation or corporations placed before the Court and does not confer power to grant a general relaxation for unidentified future private companies. Leave was therefore limited to management of Tour Queensland Pty Ltd in any capacity other than director.

Jurisdiction
Australia
Judgment Date
28 November 1996
Procedural Posture
Application for Leave Under S 229(3) the Corporations Law to Act as a Director and to Manage Corporations / Reasons for Judgment and Orders
Outcome
Application granted in part; leave granted to manage Tour Queensland Pty Ltd other than as director; wider relaxation and leave to act as director refused; no order for costs.
Legal Topics
['disqualification From Corporate Management' 'leave to Manage Corporations' 'directors' 'scope of Court Power Under S 229(3) the Corporations Law']

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Procedural Posture

Application for Leave Under S 229(3) the Corporations Law to Act as a Director and to Manage Corporations / Reasons for Judgment and Orders

  1. 1 ['Whether leave should be granted under s 229(3) the Corporations Law for Mr Shneider to act as a director of Tour Queensland Pty Ltd.' 'Whether leave should be granted for Mr Shneider to take part in the management of Tour Queensland Pty Ltd in a capacity other than director.' 'Whether s 229(3) the Corporations Law empowers the Court to grant a general relaxation permitting management of private companies not specifically identified.' 'Whether any order for costs should be made.']

Ratio Decidendi

Although there was no reasonable likelihood of Mr Shneider re-offending and no risk to any relevant public interest if some relaxation were permitted, there was no real need for him to be a director of Tour Queensland Pty Ltd and his convictions were recent and connected with management of a public company. Section 229(3) permits leave only in relation to a specific corporation or corporations placed before the Court and does not confer power to grant a general relaxation for unidentified future private companies. Leave was therefore limited to management of Tour Queensland Pty Ltd in any capacity other than director.

Court Disposition

Application granted in part; leave granted to manage Tour Queensland Pty Ltd other than as director; wider relaxation and leave to act as director refused; no order for costs.

Orders

  • ['The applicant has leave to take part in the management of Tour Queensland Pty Ltd in any capacity other than that of a director.']