Jarrett

[1999] FCA 503

FEDERAL COURT OF AUSTRALIA

Jarrett [1999] FCA 503

CORPORATIONS – directors’ duties – application for leave to act as director and manager of a corporation pursuant to s 229 Corporations Law – matters taken into account in granting leave

Corporations Law s 229

IN THE MATTER OF KENNETH CHARLES JARRETT

V 3096 of 1999

FINN J
MELBOURNE
21 APRIL 1999

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	V 3096 of 1999

IN THE MATTER OF KENNETH CHARLES JARRETT Applicant
JUDGE:	FINN J
DATE OF ORDER:	21 APRIL 1999
WHERE MADE:	MELBOURNE

THE COURT ORDERS THAT:

1.Leave is given pursuant to s 229 of the Corporations Law to Kenneth Charles Jarrett to act as a manager and director of Allans Music Group Pty Ltd ACN 082 019 341, on condition that:

(a)the leave is restricted to Allans Music Group Pty Ltd ACN 082 019 341

(b)within seven days of this order, a person registered as an auditor under the provisions of Part 9.2 of the Corporations Law be appointed as the auditor of Allans Music Group Pty Ltd ACN 082 019 341.

(c)Allans Music Group Pty Ltd ACN 082 019 341 cause to be prepared, audited and lodged with the Australian Securities and Investments Commission an Annual Financial Report as defined in s 295 of the Corporations Law, for the financial year of the company ending 30 June 1999.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	V 3096 OF 1999

IN THE MATTER OF KENNETH CHARLES JARRETT Applicant
JUDGE:	FINN J
DATE:	21 APRIL 1999
PLACE:	MELBOURNE

EX TEMPORE REASONS FOR JUDGMENT

1. This is an application by Kenneth Charles Jarrett for leave pursuant to s 229 of the Corporations Law to act as a manager and director of Allans Music Group Pty Ltd. The need for the application is as follows. In December 1993 Mr Jarrett was charged initially with a number of serious offences by the Director of Public Prosecutions. Ultimately he was charged with the offence of failing to act honestly in the exercise of his powers and discharge of his duties as a director with intent to deceive and defraud.

2. As set out in his affidavit filed with his application, the charge related (i) to the concealment of the true nature of equitable interests which he and others associated with the Elders group of companies had in convertible bonds issued by Elders in 1984, and (ii) to the concealment of the true reasons for two payments to Allen Robert Hawkins or associated companies totalling approximately $66.5 million which were disguised as being genuine foreign exchange hedging transactions.  To that charge, Mr Jarrett pleaded guilty on 20 June 1994.  Justice Coldrey of the Supreme Court of Victoria sentenced him to imprisonment for 18 months of which 12 months constituted a suspended sentence with the custodial sentence being served for the balance of the term. 

3. According to Mr Jarrett’s…