Australia · Federal Court of Australia in ASIC civil penalty proceedings

Julie Cassimatis: director ban

Ended The penalty reasons of 22 March 2018 say the seven year disqualification commences on the date of publication of those reasons. The end date of 21 March 2025 is calculated from that start and length, the Court and ASIC did not state one. No stay was found in the penalty reasons, ASIC's releases or the Full Court orders.

Grounds

ASIC said the Federal Court found in August 2016 that the Storm Financial directors breached their duty to exercise their powers with reasonable care and diligence under section 180 of the Corporations Act 2001. In March 2018 Justice Dowsett ordered a 70,000 dollar penalty and a seven year disqualification from managing corporations for each of them.^1,3

Companies

Storm Financial Pty Ltd

Record

• 26 August 2016ASIC announced the Federal Court finding that the directors breached their duties.⁵
• 22 March 2018Justice Dowsett ordered that each respondent be disqualified for seven years, "commencing on the date of publication of these reasons".^3,1
• 29 March 2018Justice Dowsett formalised the penalty and costs orders, according to ASIC.¹
• 19 April 2018Notice of appeal filed against the liability and penalty judgments.¹
• 27 March 2020ASIC said the Full Federal Court, by majority, dismissed the appeal.^2,4
• 5 August 2020ASIC said the High Court refused special leave to appeal.²
• 18 March 2021ASIC said the 70,000 dollar penalty was paid.²

Sources

1. Australian Securities and Investments Commission, Directors of Storm Financial penalised for breach of duties (18-081MR) (22 March 2018)
2. Australian Securities and Investments Commission, Federal Court confirms Storm Financial directors breached duties (20-074MR) (27 March 2020)
3. Federal Court of Australia, Australian Securities and Investments Commission v Cassimatis (No 9) [2018] FCA 385 (22 March 2018)
4. Federal Court of Australia, Cassimatis v Australian Securities and Investments Commission [2020] FCAFC 52 (27 March 2020)
5. Australian Securities and Investments Commission, Directors of Storm Financial found to have breached their duties under the Corporations Act (16-277MR) (26 August 2016)

A disqualification restricts acting as a company director for the period stated. It is a civil measure and is not a criminal conviction unless stated. How bans work.