Case Law Review - the Plaintiff

LAW REPORT CASE REVIEW

Name of Case:

John: In the matter of ABC

Court: G j, single judge of the Federal Court of Australia

Material facts:

The plaintiff, Mr. John, was autonomically disqualified from managing corporations under s206B of the Corporations Act 2001 (the Act) for a conviction of an offence that involved “dishonesty and is punishable by imprisonment for at least 3 months”. Accordingly, on 14 April 2005, he pledged guilty to 5 charges, relating to dishonestly obtaining social security payments of $13,578.94 by under-declaring his income, failing to advise earnings with 2 other companies and failing to advise Datamatch that he did not attend semester 2 of 2001.

Pursuant to s206G(1) of the Act, after his notice of proposed application obtained approval from the Asiincon (ASIC), he sent application to the Court, seeking Permission to be appointed director of a proprietary company, namely ABC, which was established several months after his convictions and had one shareholder and one director, Mr. Doogay.

The major legal issue in this case is whether Mr. John is eligible, under s206G(1)(c) of the Act, to be granted Permission to manage a company after being autonomically disqualified under s206B(1)(ii) of the Act.

Relevant law the judge based on in making his decision

1. Legislation

• S206A (1) of the Act provides types of offenses to disqualify a person from managing a corporation.

• S206B (1)(ii) of the Act provides the plaintiff’s automatic disqualification from managing a corporation.

• S206B (2) of the Act provides for the period of disqualification, commencing on the date of conviction.

• S206G (1)(c) of the Act provides the ability for a disqualified person to apply for Permission to manage a particular corporation if the person was not disqualified by ASIC.

2. Legal principles

• The applicant bears the ones of establishing the Court to make an exception

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