ASIC v Australian Investors Forum Pty Ltd & Ors (No 2) [2005] NSWSC 267

Reported Decision : 53 ACSR 305 (2005) 23 ACLC 929

New South Wales Supreme Court

CITATION : ASIC v Australian Investors Forum Pty Ltd & Ors (No 2) [2005] NSWSC 267

HEARING DATE(S) : 19 to 23 July, 27 to 30 July and 5 & 6 August, 2004

JUDGMENT DATE : 4 April 2005

JURISDICTION : Equity Division

JUDGMENT OF : Palmer J

DECISION : Numerous contraventions of Corporations Act found proved - proceedings stood over for evidence and submissions as to consequential relief.

CATCHWORDS : CORPORATIONS - DIRECTORS AND OFFICERS - DISCLOSURE REQUIREMENTS - Whether company had contravened s.727(1) Corporations Act by failing to make disclosures and failing to bring investors within exemption provided by s.208(10) Corporations Act - whether director knowingly involved in contravention. - SECURITIES DEALER'S LICENCE - CONDITIONS - Whether company breached conditions of licence - whether breach of licence constitutes a contravention of Corporations Act - whether director knowingly involved. - UNDISCHARGED BANKRUPT - MANAGEMENT - ANNULMENT - Whether evidence proved that an undischarged bankrupt had managed corporation - whether subsequent annulment of bankruptcy retrospectively expunged contravention. - DIRECTORS' STATUTORY DUTIES - Whether various transactions were dishonest and for improper purposes - whether director and officer contravened statutory duties to corporations.

- Australian Securities and Investments Commission Act 1989 (Repealed 15.07.2001) (Cth) - s.8 - Australian Securities and Investments Commission Act 2001 - s.19 - Bankruptcy Act 1966 (Cth) - s.153A LEGISLATION CITED : - Companies (WA) Code - s.537 - Corporations Act 2001 (Cth) - Schedule 3, s.9, s.79, s.83, s.206A, s.206B, s.206E, s.208, s.209(2), s.228, s.229, s.700(2), s.700(3), s.703, s.706, s.708(2), s.708(10) s.727(1), s.1308, s.1311, s.1317DA, s.1317E, s.1317H, s.1324(10), s.1332, s.1401(2), s.1430(1), s.1431(1), s.1432(1) - Corporations Law (Repealed 15.07.2001) (Cth) - Chapter 1, Pt 1.2, Chapter 7, s.104, s.784, s.786(1), s.787, s.826(1), s.827 - Criminal Code Act 1995 (Cth) - Chapter 2, s.13.2(1)