Australian Securities and Investments Commission v Macdonald (No 12) [2009] NSWSC 714

Reported Decision : 259 ALR116 73 ACSR 638

New South Wales Supreme Court

CITATION : Australian Securities and Investments Commission v Macdonald (No 12) [2009] NSWSC 714 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 27 July 2009

JUDGMENT DATE : 20 August 2009

JUDGMENT OF : Gzell J

DECISION : Exoneration refused. Declarations of contraventions made. Disqualification orders made. Pecuniary penalties imposed. No order as to costs of some separate issues.

CATCHWORDS : CORPORATIONS - Supervision, Regulation and Correction - breaches of civil penalty and other provisions - whether should be relieved from liability under s 1317S(2) or s 1318(1) of the Corporations Act - whether acted honestly - whether prohibition orders should be made under s 206C or s 206E - whether pecuniary penalty orders should be made under s 1317G(1) and s 1317G(1A) - COSTS - whether separate issues constituted by a group of discrete issues - whether no order for costs where the plaintiff succeeds on one separate issue and fails on another

Corporations Act 2001 (Cth) Corporations Law (Cth) Uniform Civil Procedure Rules 2005 LEGISLATION CITED : James Hardie (Civil Penalty Compensation Release) Act 2005 James Hardie Former Subsidiaries (Winding up and Administration) Act 2005 James Hardie (Civil Liability) Act 2005 Civil Procedure Act 2005

CATEGORY : Consequential orders

Australian Securities and Investments Commission v Macdonald (No 11) [2009] NSWSC 287; (2009) 256 ALR 199 Macdonald v Australian Securities and Investments Commission [2007] NSWCA 304; (2007) 65 ACSR 299 Daniels v Anderson (1995) 37 NSWLR 438 Commonwealth Bank of Australia v Friedrich (1991) 5 ACSR 115 Re HIH Insurance (in prov liq); Australian Securities and Investments Commission v Adler [2002] NSWSC 483; (2002) 42 ACSR 80 Australian Securities and Investments Commission v Vines [2005] NSWSC 1349; (2005) 65 NSWLR 281 Vines v Australian Securities and Investments Commission [2007] NSWCA 75; (2007) 62 ACSR 1 Powell & Anor v Fryer & Ors [2000] SASC 97; (2000) 18 ACLC 480 Powell v Fryer [2001] SASC 59; (2001) 37 ACSR 589 Hall v Poolman [2007] NSWSC 1330; (2007) 215 FLR 243 Nocton v Lord Ashburton [1914] AC 932 McCann v Switzerland Insurance Australia Ltd [2000] HCA 65; (2000) 203 CLR 579 Australian Securities and Investments Commission v Edwards (No 3) [2006] NSWSC 376; (2006) 57 ACSR 209 R J Elrington Nominees Pty Ltd v Corporate Affairs Commission (SA) (1989) 1 ACSR 93 Corporate Affairs Commission v Papoulias (1990) 20 NSWLR 503 Australian Securities Commission v Forem-Freeway Enterprises Pty Ltd [1999] FCA 179; (1999) 30 ACSR 339 Deputy Commissioner of Taxation v Dick [2007] NSWCA 190; (2007) 242 ALR 152 Maelor Jones Investments (Noarlunga) Pty Limited v Heywood-Smith (1989) 54 SASR 285 Australian Securities and Investments Commission v Vines [2006] NSWSC 760; (2006) 58 ACSR 298 Australian Securities and Investments Commission v Whitlam (No 2) [2002] NSWSC 718; (2002) 42 ACSR 515 Deputy Commission of Taxation v Clark [2003] NSWCA 91; (2003) 57 NSWLR 113 Australian Securities and Investments Commission v Vines [2003] NSWSC 1116; (2003) 182 FLR 405 Australian Securities and Investments Commission v Southcorp Ltd (No 2) [2003] FCA 1369; (2003) 130 FCR 406 Exicom Pty Ltd v Futuris Corporation Ltd (1995) 123 FLR 394 CASES CITED : Rich v Australian Securities and Investments Commission [2004] HCA 42; (2004) 220 CLR 129 Re Chemeq Ltd; Australian Securities and Investments Commission v Chemeq Ltd [2006] FCA 936; (2006) 234 ALR 511 Vines v Australian Securities and Investments Commission [2007] NSWCA 126; (2006) 63 ACSR 505 Australian Softwood Forests Pty Ltd v Attorney-General (NSW) [1981] HCA 49; (1980-1981) 148 CLR 121 Corporate Affairs Commission of NSW v Transphere Pty Ltd (1988) 15 NSWLR 596 Australian Securities & Investments Commission v Sweeney [2001] NSWSC 114 Australian Securities and Investments Commission v Pegasus Leveraged Options Group Pty Ltd [2002] NSWSC 310; (2002) 41 ACSR 561 Australian Securities and Investments Commission v McDougall [2006] FCA 427; (2006) 229 ALR 158 Australian Securities and Investments Commission v FUELbanc Australia Ltd [2007] FCA 960; (2007) 162 FCR 174 Elliott v Australian Securities and Investments Commission [2004] VSCA 54; (2004) 10 VR 369 Australian Securities and Investments Commission v White [2006] VSC 239; (2006) 58 ACSR 261 Australian Securities and Investments Commission v Sydney Investment House Equities Pty Ltd [2009] NSWSC 144; (2009) 253 ALR 616 Australian Securities and Investments Commission v Vizard [2005] FCA 1037; (2005) 145 FCR 57 Australian Securities and Investments Commission v Beekink [2007] FCAFC 7; (2007) 238 ALR 595 Re OneTel Ltd (in liq); Australian Securities and Investments Commission v Rich [2003] NSWSC 186; (2003) 44 ACSR 682 Adler v Australian Securities and Investments Commission [2003] NSWCA 131; (2003) 179 FLR 1 Mill v The Queen (1988) 166 CLR 59 Pearce v The Queen [1998] 8 HCA 57; (1998) 194 CLR 610 Postiglione v The Queen (1996-1997) 189 CLR 295 Lowe v The Queen (1984) 154 CLR 606 Australian Competition and Consumer Commission v ABB Transmission and Distribution Ltd (No 2) [2002] FCA 559; (2002) 190 ALR 169 ASC v Donovan (1998) 28 ACSR 583 Hughes v Western Australian Cricket Australian Inc (1986) 8 ATPR 40-748 Waters v PC Henderson (Australia) Pty Ltd [1994] NSWCA 338; (1994) 254 ALR 328 James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296 Alamdo Holdings Pty Ltd v Australian Window Furnishings (NSW) Pty Ltd [2008] NSWSC 7