disqualification

Question 1

2 types of DQ

Answer 1

discretionary & mandatory

Question 2

DQ order

Answer 2

s 1(1) CDDA

Question 3

Re Cannonquest

Answer 3

cannot participate in the promotion of a new company during DQ period

Question 4

Rv Campbell

Answer 4

cannot be concerned/take part in co’s management via acting in some other capacity

Question 5

discretionary

Answer 5

ss 2-4

Question 6

mandatory

Answer 6

s 6: insolvency & unfitness

Question 7

Re Grayan

Answer 7

once unfitness established, mandatory DQ kicks in. Doesnt matter how contrite D is, court shall have no regard to D’s reform

Question 8

Re Lo-Line

Answer 8

ordinary commercial misjudgment insufficient eg lack of commercial probity, gross negli, total incompetence

Question 9

Re Dawson

Answer 9

courts take a subjective view, on a case-by-case basis

otf, D used crown debts to finance co operations

Question 10

Sullman

Answer 10

breach of duty not required, broad-conduct based approach. unfitness can be demonstrated by conduct w/o breach

Question 11

TC Stephenson

Answer 11

merely being signatory to co’s cheques doesnt make D liable. DQ order dismissed.

Question 12

difference between WT & FT

Answer 12

WT = recklessness, FT = intention to defraud

Question 13

Welham v DPP

Answer 13

actual dishonesty

Question 14

Re Patrick

Answer 14

real dishonesty

Question 15

Re Augustus Barnett

Answer 15

comfort letters from parent co to sub = sign of honesty rather than fraud. claim failed.
FT hard to prove

Question 16

Re William C Leitch

Answer 16

if co cont trading & incurring debts at a time where D know there is no reasonable prospect of repaying creditors = intent to defraud

Question 17

standard of skill expected for WT

Answer 17

Re Continental Assurance

intelligent layman

Question 18

lack of basic financial & accounting knowledge = no defence

Answer 18

ASIC v Healey, RE DKG

Question 19

not playing an active part in management = no defence

Answer 19

RE Brian Pierson

no such thing as sleeping Ds

Question 20

defence

Answer 20

s 214(3)

Question 21

Robin v Gunner

Answer 21

increasing company’s indebtedness; courts take a dim view on this

Question 22

Absence of professional advice no defence

Answer 22

Re Brian D Pierson

Question 23

Re Purpoint

Answer 23

resigning from board & seeking opportunities elsewhere is not acceptable course of action