ASIC v Rich & Ors [2004] NSWSC 836

Reported Decision : 50 ACSR 500 (2004) 22 ACLC 1232

New South Wales Supreme Court

CITATION : ASIC v Rich & Ors [2004] NSWSC 836 HEARING DATE(S) : 31/08/04, 02/09/04, 03/09/04 JUDGMENT DATE : 9 September 2004

JUDGMENT OF : White J DECISION : See Page 37 of Judgment

CATCHWORDS : Corporations - Officers and employees - Duties and powers - Duty of care and diligence - Consent orders - Responsibilities of Chairman discussed - s 1317E requirements for specificity discussed - s 1317F discussed - Period of disqualification - Factors to consider for non-executive chairman. Corporations Act (2001) (Cth) Australian Securities and Investments Commission Act 2001 (Cth) Bankruptcy Act 1966 (Cth) LEGISLATION CITED : Corporate Law Reform Bill 1992 Corporate Law Economic Reform Bill 1998 Trade Practices Act 1974 (Cth) Petroleum Retail Marketing Sites Act 1980 (Cth) ASIC v Rich & Ors (No. 2) (2003) 21 ACLC 672; 44 ACSR Williams v Powell [1894] WN (Eng 141 Gramophone Co Ltd v Magazine Holder Co (1911) 28 RPC 221 Termijtelen v Van Arkel [1974] 1 NSWLR 525 Wallersteiner v Moir [1974] 3 All ER 217 Metzger v Department of Health and Social Security [1977] 3 All ER 444 BMI Limited v Federated Clerks Union of Australia (1983) 51 ALR 401 Young, Declaratory Orders, 2 ed Dean-Willcocks Pty Ltd v Commissioner of Taxation (No. 2) (2004) 49 ACSR 325; 22 ACLC 1034 ASIC v Rich (2003) 174 FLR 128; 44 ACSR 341; 21 ACLC 450 Vrisakis v Australian Securities Commission (1993) 9 WAR 395 Australian Securities & Investments Commission v Adler (No. 4) (2002) 189 ALR 365; 20 ACLC 723 Australian Securities Commission v Forem-Freeway Enterprises Pty Ltd (1999) 30 ACSR 399; 17 ACLC 511 Tannous v Mercantile Mutual Insurance Co Ltd [1978] 2 NSWLR 331 CASES CITED : News Limited v Australian Rugby Football League Limited (1996) 64 FCR 410 Re Great Eastern Cleaning Services Pty Ltd and The Companies Act [1978] 2 NSWLR 278 BP Australia Limited v Brown & Ors (2003) 58 NSWLR 322 Cameron v Cole (1944) 68 CLR 571 Rich & Silbermann v ASIC (2003) 203 ALR 671; 48 ACSR 6; (2004) 22 ACLC 286 Starnex Securities Pty Ltd & Ors; Australian Securities & Investments Commission v Starnex Securities Pty Ltd [2003] FCA 1375 NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission (1996) 71 FCR 285 Minister for Industry, Tourism and Resources v Mobil Oil Australia Pty Ltd (2004) ATPR 41-993 ASIC v Adler (No. 5) (2002) 42 ACSR 80; 20 ACLC ASC v Donovan (1998) 28 ACSR 583 Daniels v Anderson (1995) 37 NSWLR 438 Re Barings Plc; Secretary of State for Trade and Industry v Baker & Ors [1998] BCC 583 Dairy Containers Limited v NZI Bank Limited (1995) 13 ACLC 3211 Adler v ASIC (2003) 21 ACLC 1810; (2003) 46 ACSR 504 Australian Securities & Investments Commission v Plyman Elliott & Harrison [2003] VSC 230 Australian Securities & Investments Commission PARTIES : v John David Rich & 3 Ors FILE NUMBER(S) : SC 5934/01 COUNSEL : Plaintiff: RSB MacFarlan QC, N J Beaumont, A J Abadee 3rd Defendant: J N West QC SOLICITORS : Plaintiff: Jan Redfern Solicitor 3rd Defendant: Watson Mangioni Solicitors