RE CASH CONVERTERS INTERNATIONAL LTD; EX PARTE COOKE [2006] WASC 203

Jurisdiction:	SUPREME COURT OF WESTERN AUSTRALIA	Citation No:	[2006] WASC 203
Case No:	COR:121/2006	Heard:	29 AUGUST 2006
Coram:	MASTER NEWNES	Delivered:	20/09/06
No of pages:	13	Judgment Part:	1 of 1
Result:	Application dismissed
Category:	B
PDF Version

Parties:	MICHAEL IAN COOKE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION
Catchwords:	Corporations Director Bankruptcy Application for leave to manage a corporation Relevant considerations Corporations Act 2001 s 206G Turns on own facts
Legislation:	Corporations Act 2001(Cth), s 206A, s 206G, s 206G(1)
Case References:	Adams v Australian Securities & Investments Commission (2003) 46 ACSR 68 Australian Securities and Investments Commission v Infomercial Management Group Pty Ltd [2002] VSC 262 Murray v Australian Securities Commission (1993) 12 ACLC 11 Re Australian Limousin Breeders Society Ltd (1989) 7 ACLC 426 Re Etick Ltd; Ex parte Mansell [2006] WASC 111 Re Ansett (1990) 3 ACSR 357 Re Application of Chapman (2006) 56 ACSR 706 Re Shneider (1996) 15 ACLC 90 Re Zim Metal Products Pty Ltd (1977) 2 ACLR 553

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA

IN CHAMBERS

CITATION : RE CASH CONVERTERS INTERNATIONAL LTD; EX PARTE COOKE [2006] WASC 203 CORAM : MASTER NEWNES HEARD : 29 AUGUST 2006 DELIVERED : 20 SEPTEMBER 2006 FILE NO/S : COR 121 of 2006 MATTER : Section 206G(1) of the Corporations Act 2001 EX PARTE

MICHAEL IAN COOKE

Plaintiff

Catchwords:

Corporations - Director - Bankruptcy - Application for leave to manage a corporation - Relevant considerations - Corporations Act 2001 s 206G - Turns on own facts

Legislation:

Corporations Act 2001(Cth), s 206A, s 206G, s 206G(1)

Result:

Application dismissed

(Page 2)

Category: B

Representation:

Counsel:

Plaintiff : Mr N W McKerracher QC

Intervener : Mr J McGrath

Solicitors:

Plaintiff : Q Legal

Intervener : Australian Securities and Investments Commission

Case(s) referred to in judgment(s):

Adams v Australian Securities & Investments Commission (2003) 46 ACSR 68
Australian Securities and Investments Commission v Infomercial Management Group Pty Ltd [2002] VSC 262
Murray v Australian Securities Commission (1993) 12 ACLC 11
Re Australian Limousin Breeders Society Ltd (1989) 7 ACLC 426
Re Etick Ltd; Ex parte Mansell [2006] WASC 111

Case(s) also cited:

Re Ansett (1990) 3 ACSR 357
Re Application of Chapman (2006) 56 ACSR 706
Re Shneider (1996) 15 ACLC 90
Re Zim Metal Products Pty Ltd (1977) 2 ACLR 553

(Page 3)

1 MASTER NEWNES: This is an application by the plaintiff for leave, pursuant to s 206G(1) of the Corporations Act 2001 (Cth) (the "Act"), to act as a director and to take part in the management of Cash Converters International Ltd ("Cash Converters") and certain of its subsidiaries. The need for the application arises because, on 24 May 2006, the plaintiff became bankrupt on his own petition. The plaintiff was a director of Cash Converters from 26 April 1995 until 24 May 2006, when he resigned immediately before lodging the petition in bankruptcy.

2 The application is opposed by the…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2006] WASC 203
Decision Date

CaseChat Overview and Summary

Michael Ian Cooke, a former director of Cash Converters International Ltd, applied for leave under s 206G(1) of the Corporations Act 2001 to act as a director of Cash Converters and its subsidiaries. The application was made following Cooke's bankruptcy, which arose largely from his investments in tax-driven schemes. The Australian Securities and Investments Commission opposed the application, arguing that there was insufficient evidence to show that Cash Converters could not continue to operate successfully without Cooke's involvement. Cooke submitted that his intimate knowledge of the business, his good character, and the difficulty of finding a suitable replacement justified the grant of leave. The court found that, while Cooke's bankruptcy was not due to any misconduct in his role as a director, the substantial debt he owed, partly from his investments, and the nature and scale of Cash Converters' business, weighed against granting leave. The application was dismissed.

Orders