Australian Securities and Investments Commission v Managed Investments Ltd (No 10)

[2017] QSC 96

Supreme Court of Queensland

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Interrogate

Catchwords

1. Corporations
2. › Management and administration
3. › Duties and liabilities of officers of corporation
4. › Disqualification from management of corporation
5. › By court order
6. › Serious dishonest conduct by officers of responsible entity of managed investment scheme
7. › Relevant factors including nature and seriousness of contraventions, protection of public, deterrence, and mitigating factors
8. › What period of disqualification should apply
9. › Corporations Act 2001 (Cth), s 206C
1. Corporations
2. › Management and administration
3. › Duties and liabilities of officers of corporation
4. › Fiduciary and related statutory duties
5. › Remedies and penalties for breach of duty
6. › Pecuniary penalty orders and compensation orders
7. › Whether appropriate to make both penalty and compensation orders
8. › Approach to setting pecuniary penalties for dishonest conduct
9. › Corporations Act 2001 (Cth), ss 1317G, 1317H
1. Corporations
2. › Managed investment schemes
3. › Duties of responsible entity and officers
4. › Contraventions of ss 601FC and 601FD
5. › Unauthorised payments from scheme property to related parties
6. › Creation and use of false documents
7. › Failure to report contraventions to ASIC
8. › Corporations Act 2001 (Cth), ss 601FC(1), 601FC(5), 601FD(1), 601FD(3), 208, 209(2), 286, 344(1)
1. Practice and Procedure
2. › Judgments and orders
3. › Adequacy of reasons
4. › Supplementary factual findings after delivery of judgment but prior to final orders
5. › Whether appropriate to make findings of fact to clarify basis for declarations

Quick Take

Permanent disqualification and pecuniary penalties up to $650,000 were imposed for officers of a responsible entity who engaged in dishonest conduct involving unauthorised payments of approximately $250 million from scheme property and creation of false documents to conceal those payments. The court confirmed that both pecuniary penalty orders and compensation orders may be made against the same defendants for the same contraventions. The totality principle applies to disqualification periods set for individual contraventions.