Macleod v Australian Securities Commission

Macleod was the applicant in proceedings before the Federal Court of Australia, seeking judicial review of a decision made by the Australian Securities Commission (ASC). The ASC had issued a notice under s 52 of the *Australian Securities Commission Act 1989* (Cth) requiring Macleod to produce certain documents. Macleod contended that the notice was invalid.

The primary legal issue before the Full Federal Court was whether the ASC had acted *ultra vires* in issuing the notice. Specifically, the Court had to determine if the ASC had a proper basis for believing that the documents sought were relevant to an investigation into potential contraventions of the *Companies (Acquisition of Shares) Act 1980* (Cth) and the *Companies Act 1981* (Cth), as required by s 52(1) of the ASC Act.

Gleeson CJ and McHugh J, in separate judgments, both found that the ASC had not demonstrated that it had formed the requisite belief. The Court held that the ASC's belief must be based on reasonable grounds, and that the evidence before the Court did not establish that the ASC had undertaken sufficient inquiry or had sufficient information to form such a belief. The Court emphasised that the power to compel production of documents under s 52 is a significant one, and its exercise requires a proper and demonstrable basis.

The Court ordered that the ASC's notice be set aside.