This article is from the Australian Property Journal archive
AFTER suffering a humiliating blow two years ago, corporate regulator ASIC has won a long running legal battle against the former directors of Prime Trust, by successfully reinstating the penalties orders against them.
The Full Court of the Federal Court of Australia has made disqualification and pecuniary penalty orders against William Lewski, Mark Butler, Kim Jaques and Michael Wooldridge, former directors of Australian Property Custodian Holdings Limited (APCHL).
In November 2017 ASIC suffered a blow after the Full Court overturned the bans imposed the directors by the trial judge in December 2014.
ASIC successfully appealed to the High Court of Australia, which unanimously allowing ASIC’s appeals in part and ordering the proceedings to be remitted to the Full Court for determination of what effect, if any, its decision was to have on the penalties and disqualification orders made against the directors.
The latest Full Court judgement will reinstate the original pecuniary penalties and periods of disqualification imposed by the trial judge, Justice Murphy, in December 2014.
The reinstated penalties are:
- Lewski – disqualified from managing a company for 13 years 134 days (original period 15 years, less time already served) and fined $230,000;
- Butler – disqualified from managing a company for 2 years 134 days (original period 4 years, less time already served) and fined $20,000; and
- Jaques – disqualified from managing a company for 2 years 134 days (original period 4 years, less time already served) and fined $20,000.
- As to the remaining former director, Dr Wooldridge, after a contested hearing on 13 August 2019, the Full Court made orders that he be disqualified from managing a company for a further 263 days (original period 2 years and 3 months, less time already served) and that he be fined $20,000. This ruling, in respect of Dr Woolridge, also effectively reinstates the penalties imposed by Justice Murphy in December 2014.
Following the orders of the Full Court, the disqualification period for Lewski, Butler and Jaques commenced on 11 October 2019, and, after an initial stay, the disqualification period for Dr Wooldridge commenced when that stay lapsed on 23 October 2019.
The Full Court further ordered that the four directors pay ASIC’s costs of, and incidental to each of their appeals to the Full Federal Court in 2015 (with the exception of the costs of those appeals that the High Court ordered that ASIC should pay).
Dr Wooldridge has applied to the Federal Court for leave to manage four corporations. This matter is listed for hearing on 31 October 2019 before Anderson J.
