Canwest Global Communications Corporation v Treasurer of the Commonwealth of Australia

Canwest Global Communications Corporation sought judicial review of a decision made by the Treasurer of the Commonwealth of Australia under section 18(4) of the Foreign Acquisitions and Takeovers Act 1975 (Cth). The Treasurer had made an order requiring Canwest to divest itself of shares in certain companies that held shares in a company with television licences controlled by foreign persons. The legal issues before the court included whether the Treasurer had exercised the relevant power correctly and whether the Treasurer was required to follow the rules of natural justice in making the order.

The court considered whether the Treasurer had exercised the power under section 18(4) of the Act correctly. It examined the tests of control and the relevant head of power to determine if the Treasurer had exercised his discretion correctly. The court also considered whether the Treasurer was required to follow the rules of natural justice by affording Canwest an opportunity to make submissions before making the order. Ultimately, the court found that the Treasurer had erred in law by not exercising the discretion under the relevant head of power and that the Treasurer had not followed the rules of natural justice.

The court found that the Treasurer's decision was flawed and set it aside. It allowed the applications for judicial review and ordered the Treasurer to pay the costs of each application. The court's decision highlighted the importance of exercising discretion under the relevant head of power and following the rules of natural justice in making orders under the Act.