Australian Securities Commission v Spencer, Michael Geoffrey [1997] FCA 971

FEDERAL COURT OF AUSTRALIA

CORPORATIONS - application for declaration that respondent has breached s 232(6) of the Corporations law - company agent for life insurance company and owner of client register - director in debt to life company - respondent devised and implemented scheme whereby company assigned register to life company to satisfy director's personal debt - no consideration for assignment - life company re-sells register to new company formed by director - application allowed by consent - penalty $5000 and costs $500 Corporations law: ss 79, 232(6). 1317EA, 1317EA(2) and 1317EA(3) AUSTRALIAN SECURITIES COMMISSION v MICHAEL GEOFFREY SPENCER NO. TG 3009 of 1997 HEEREY J HOBART 24 JULY 1997

IN THE FEDERAL COURT OF AUSTRALIA ) ) VICTORIA DISTRICT REGISTRY ) TG 3009 of 1997 ) GENERAL DIVISION )

BETWEEN: AUSTRALIAN SECURITIES

COMMISSION

Applicant

AND: MICHAEL GEOFFREY SPENCER

Respondent

JUDGE: HEEREY J PLACE: HOBART DATE: 24 JULY 1997

MINUTES OF ORDER

THE COURT ORDERS THAT:

1. Declare pursuant to s 1317EA(2) of the Corporations Law that the respondent has by the following "specified act" contravened s 232(6) of the Corporations Law in relation to Harq Nominees Proprietary Limited (in liquidation): In or about June 1995 Michael Geoffrey Spencer devised and implemented a scheme whereby a director of Harq Nominees Proprietary Limited caused that company to assign its register of insurance clients to the AMP Society in order to satisfy a personal debt of $230,500 owed by the director to the AMP Society. 2. The respondent pay a penalty of $5,000. 3. The respondent pay the applicant's costs of and incidental to this application fixed at $500. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.