Australian Securities and Investments Commission v Mitchell (No 2) [2020] FCA 1098

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Mitchell (No 2) [2020] FCA 1098 File number: VID 1449 of 2018

Judge: BEACH J

Date of judgment: 31 July 2020

Catchwords: CORPORATIONS – directors' duties – domestic broadcast rights for the Australian Open – information flow and reporting to the board of Tennis Australia – negotiations with the Seven Network – renewal of rights agreement – existence of competitive tension – potential rival bids – relevance of exclusive negotiating period – loss of opportunity to go to tender – directors' failure to present information to board – role of directors in negotiations – secret dealings between a director of one party with a representative of the counterparty – failure to exercise due care and diligence as a director – improperly misusing position as a director – improperly misusing information gained as a director – alleged contraventions of ss 180(1), 182(1) and 183(1) of Corporations Act 2001 (Cth) – declarations of contraventions under s 1317E – civil penalties under s 1317G – disqualification orders under ss 206C and 206E

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 19, 77, 79 Corporations Act 2001 (Cth) ss 180, 182, 183, 189, 1317S, 1318 Criminal Code (Cth) s 12.3(6) Evidence Act 1995 (Cth) ss 135, 136, 140 Federal Court of Australia Act 1976 (Cth) s 46

Cases cited: Australian Securities and Investments Commission v Adler (2002) 168 FLR 253 Australian Securities and Investments Commission v Cassimatis (No 8) (2016) 336 ALR 209 Australian Securities and Investments Commission v Healey (2011) 196 FCR 291 Australian Securities and Investments Commission v Mariner Corporation Ltd (2015) 241 FCR 502 Australian Securities and Investments Commission v Rich (2003) 174 FLR 128 Australian Securities and Investments Commission v Rich (2009) 236 FLR 1 AWA Ltd v Daniels t/a Deloitte Haskins & Sells (1992) 7 ACSR 759 Briginshaw v Briginshaw (1938) 60 CLR 336 Cassimatis v Australian Securities and Investments Commission (2020) 376 ALR 261 Chew v The Queen (1992) 173 CLR 626 Daniels v Anderson (1995) 37 NSWLR 438 Doyle v Australian Securities and Investments Commission (2005) 227 CLR 18 Grove v Flavel (1986) 43 SASR 410 Jones v Dunkel (1959) 101 CLR 298 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170 News Ltd v South Sydney District Rugby League Football Club Ltd (2003) 215 CLR 563 Shafron v Australian Securities and Investments Commission (2012) 247 CLR 465 The Queen v Byrnes (1995) 183 CLR 501 Vrisakis v Australian Securities Commission (1993) 9 WAR 395 Weissensteiner v The Queen (1993) 178 CLR 217 Woolworths Ltd v Kelly (1991) 22 NSWLR 189 Wyong Shire Council v Shirt (1980) 146 CLR 40