Australian Securities and Investments Commission v Whitlam [2002] NSWSC 591

Reported Decision : 42 ACSR 407 (2002) 20 ACLC 1333

New South Wales Supreme Court

CITATION : Australian Securities and Investments Commission v Whitlam [2002] NSWSC 591 FILE NUMBER(S) : SC 4421/01 HEARING DATE(S) : 18/6/02,19/06/02,20/06/02,21/06/02,24/06/02,24/06/02,26/02/02,27/02/02,28/06/02,28/06/02,29/06/02,01/07/02,02/07/02 JUDGMENT DATE : 19 July 2002

PARTIES : Australian Securities and Investments Commission - Plaintiff Nicholas Richard Whitlam - Defendant JUDGMENT OF : Gzell J

COUNSEL : Mr M A Pembroke SC with Mr D R Stack for the Plaintiff Mr A J Bannon SC with Mr J Stephenson for the Defendant SOLICITORS : Australian Securities and Investments Commission Lawyer for the Plaintiff Watson Mangioni Corporate and Commercial Lawyers for the Defendant CATCHWORDS : CORPORATIONS - Supervision Regulation and Correction - Failure to sign proxy poll paper - Failure to sign a failure to vote - Whether name and initials are a signature - Whether proxy directed to chairman is directed to an office - Corporations Law (Cth), s 250A(1)(c) - Failure of chairman and proxy to vote on a poll in the way directed - Corporations Law (Cth), s 250A(4)(c) - Whether duty as chairman distinct from duty as director - Failure to act honestly - Corporations Law (Cth), s 232(2) - Improper use of position - Corporations Law (Cth), s 232(6) - Chairman proffering amended minutes on his remuneration to board for confirmation - Failure to exercise due care and diligence - Absence of damage to company - Corporations Act 2001 (Cth), s 180(1) - Absence of dishonesty - Relief from liability - Corporations Act 2001 (Cth), s 1317S(2) - EVIDENCE - Admissibility - Document containing representation based partly on observation and partly on judgment - Admissible as business record - Evidence Act 1995, s 69(2)(b) Corporations Law (Cth) Companies (New South Wales) Code Corporations Act 2001 (Cth) LEGISLATION CITED : Evidence Act 1995 Australian Securities and Investments Commission Act 2001 (Cth) Bills of Exchange Act 1909 (Cth) Conveyancing Act 1919 Statute of Frauds Link Agricultural Pty Ltd v Shanahan, McCallum & Pivot Ltd [1999] 1 VR 466 Vrisakis v Australian Securities and Investments Commission (1993) 11 ACSR 162 at 213 Briginshaw v Briginshaw (1938) 60 CLR 336 at 361-362 Neat Holding Pty Ltd v Karajan Pty Ltd (1992) 110 ALR 449 at 449-450 Leeman v Stocks (1951) Ch 941 Schneider v Norris (1814) 2 M & S 287 (105 ER 388) Evans v Hoare (1892) 1 QB 593 Knight v Crockford (1794) 1 Esp 190 (170 ER 324) Saunderson v Jackson 3 Bos & Pul 238 (126 ER 1257) Johnson v Dogson (1837) 2 M & W 653 (150 ER 918) Durrell v Evans (1862) 1 H & C 174 (158 ER 848) Cohen v Roche [1927] 1 KB 169 Commonwealth Bank of Australia v Muirhead [1997] 1 Qd R 567 Deputy Commissioner of Taxation v Boxshall (1988) 19 FCR 435 John Shaw & Sons (Salford) Ltd v Shaw [1935] 2 KB 113 at 134 CASES CITED : National Australia Bank Ltd v Market Holdings Pty Ltd (in liq) (2001) 37 ACSR 629 at 644-645 BYNG v London Life Association Ltd [1990] Ch 170 at 188 Wall v Exchange Investment Corporation [1926] Ch 143 at 146 The Second Consolidated Trust Ltd v Ceylon Amalgamated Tea & Rubber Estates Ltd [1943] 2 All ER 567 at 569 Marchesi v Barnes [1970] VR 434 Australian Growth Resources Corp Pty Ltd v Van Reesema (1988) 13 ACLR 261 Shaw and Smith, The Law of Meetings - Their Conduct and Procedure, 5th ed (1979) at 56 Joske's Law and Procedure at Meetings in Australia, 8th ed (1994) ch 6 Davidson, Company Meetings, 2nd ed (1992) at par 1002 Lumsden, Managing Proxies and the Role of Chairman, Australian Institute of Company Directors (1998) Lang, Horsley's Meeting, Procedure, Law and Practice, 4th ed (1998) at par 6.10 Puregger, The Australian Guide to Chairing Meetings 9th ed (1997) at 57-61 Shearman, Shackleton on the Law and Practice of Meetings, 9th ed (1997) at 57-61 Moore, The Law and Procedure of Meetings, (1979) at Ch 13 Clyne, The Law of Meetings, (1971) at Ch 20 Renton, Guide for Meetings and Organisations, 4th ed (1985) at 30-38 DECISION : Declarations of contravention of the Corporations Law (Cth) s 232(2) , 232(6) and s 250A; Declaration of contravention of Corporations Act 2001 (Cth) s 180(1) and relief from liability under s 1317S(2)