Lee and Australian Securities and Investments Commission

This matter concerned an appeal by Mr Lee against a decision of the Australian Securities and Investments Commission (ASIC) to disqualify him from managing corporations. The dispute arose from the failure of two related companies, where the failures were attributed to the same circumstances.

The primary legal issue before the court was whether Mr Lee should be disqualified from managing corporations under section 206F of the *Corporations Act 2001* (Cth), or alternatively, whether he should be refused permission to manage a particular company under section 206GAB of the *Corporations Act 2001* (Cth). The court was required to consider Mr Lee's conduct in light of the company failures and determine if disqualification was the appropriate response.

Deputy President McCabe P, sitting alone, found that while Mr Lee's behaviour warranted censure, disqualification was not appropriate when all considerations were weighed. The court was satisfied that other interests weighed against disqualification. The court concluded that the decision under review was not the correct or preferable one, and that Mr Lee should not be denied the opportunity to be a director.

Consequently, the court set aside the ASIC's decision and substituted its own finding that Mr Lee should not be disqualified from being involved in the management of corporations pursuant to section 206F of the *Corporations Act 2001* (Cth). Given this outcome, the court deemed it unnecessary to address the question of whether leave should be granted under section 206GAB.