SDCV v Director-General of Security & Anor

The applicant, SDCV, sought judicial review of a decision by the Director-General of Security to refuse to grant an exemption from the prohibition on foreign persons acquiring Australian assets under the *Foreign Acquisitions and Takeovers Act 1975* (Cth). The Director-General's decision was affirmed by the Administrative Appeals Tribunal. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the Director-General, in making the decision to refuse the exemption, had failed to take into account a relevant consideration, namely, the potential for the applicant to suffer prejudice or detriment as a result of the refusal. This involved an examination of the scope of the Director-General's discretion under section 57 of the Act and the principles of administrative law concerning the duty to consider relevant factors.

The High Court held that the Director-General's decision-making process was vitiated by a failure to consider a relevant consideration. Their Honours reasoned that the potential for prejudice or detriment to the applicant was a matter that the Director-General was bound to consider when exercising the discretion conferred by section 57. The Tribunal, in affirming the Director-General's decision, had also failed to properly consider this relevant factor.

Consequently, the High Court made orders quashing the decision of the Administrative Appeals Tribunal and remitting the matter to the Tribunal for redetermination according to law.