Corporate Law

ASIC v Vizard (2005)145 FCR 57

Travis
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Facts

  • Vizard was a non-executive director of Telstra.
  • While a director, Vizard accessed information from board meetings and internal briefing documents.
  • These documents outlined a strategy of acquisition of certain information technology firms.
  • Vizard created a family trust which was managed by his accountant.  He then purchased shares in firms which Telstra was going to acquire.
  • Many of these trades were losses and Vizard did not use any of Telstra’s funds.
  • ASIC commenced proceedings against Vizard for breach of section 183 of the Corporations Act 2001 (Cth) (duty to avoid conflict of interest).

Issues

  • Did Vizard breach his duty as a director to not improperly use Telstra’s information for his own advantage?

Held

  • Vizard admitted liability to breaking section 183 of the Corporations Act 2001 (Cth).
  • The Federal Court of Australia ordered Vizard to pay $400,000 in penalties and was also disqualified as acting as a director for 10 years.

Full Text

The full text is available here:  https://jade.io/summary/mnc/2005/FCA/1037


-- Download ASIC v Vizard (2005)145 FCR 57 as PDF --


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