or (a) Summary In 2000 the defendant, Stephen William Vizard, made improper use of confidential information obtained in his capacity as a director of Telstra Corporation Limited ("Telstra"). Having discovered that Mr Vizard used the confidential information to procure three investments (in an attempt to obtain an advantage for himself and his family), ASIC initiated proceedings in the Federal Court under section 183(1) and section 1317E of the former Corporations Law ("Law"). Mr Vizard had admitted his guilt and in accordance with his Honour's review of the relevant sentencing principles, Justice Finkelstein ordered that Mr Vizard: be disqualified from managing corporations for a ten year period; and pay pecuniary penalties totalling $390,000. Justice Finkelstein addressed notions of morality, public confidence and deterrence in his judgment, from which the following implications arise: the Court's view of the harm caused by so called "white collar" crimes reflect a recognition that great loss and suffering can be caused to investors and shareholders; in cases concerning corporate crimes, which may be concealed in legitimate commercial transactions, the court's primary concern is general deterrence and the good character of the defendant will have little impact on punishment; and the court may be inclined to impose more onerous obligations, such as longer disqualification orders and higher pecuniary penalties, to fortify the general deterrence function of the civil penalty provisions. (b) Facts Mr Vizard invested in listed shares through a company named Creative Technology Investments Pty Ltd ("CTI"). The sole director and member of CTI was Mr Lay, Mr Vizard's accountant. CTI entered a loan agreement with Brigham Pty Ltd ("BPL"), a trustee company. Mr Vizard, his wife and their children beneficially held the shares in BPL and were beneficiaries of the related trust. Pursuant to the loan agreement, BPL would loan funds to CTI to purchase a share portfolio. CTI would pay BPL 90% of the proceeds derived from the sale of any shares after the deduction of certain expenses.
or (a) Summary In 2000 the defendant, Stephen William Vizard, made improper use of confidential information obtained in his capacity as a director of Telstra Corporation Limited ("Telstra"). Having discovered that Mr Vizard used the confidential information to procure three investments (in an attempt to obtain an advantage for himself and his family), ASIC initiated proceedings in the Federal Court under section 183(1) and section 1317E of the former Corporations Law ("Law"). Mr Vizard had admitted his guilt and in accordance with his Honour's review of the relevant sentencing principles, Justice Finkelstein ordered that Mr Vizard: be disqualified from managing corporations for a ten year period; and pay pecuniary penalties totalling $390,000. Justice Finkelstein addressed notions of morality, public confidence and deterrence in his judgment, from which the following implications arise: the Court's view of the harm caused by so called "white collar" crimes reflect a recognition that great loss and suffering can be caused to investors and shareholders; in cases concerning corporate crimes, which may be concealed in legitimate commercial transactions, the court's primary concern is general deterrence and the good character of the defendant will have little impact on punishment; and the court may be inclined to impose more onerous obligations, such as longer disqualification orders and higher pecuniary penalties, to fortify the general deterrence function of the civil penalty provisions. (b) Facts Mr Vizard invested in listed shares through a company named Creative Technology Investments Pty Ltd ("CTI"). The sole director and member of CTI was Mr Lay, Mr Vizard's accountant. CTI entered a loan agreement with Brigham Pty Ltd ("BPL"), a trustee company. Mr Vizard, his wife and their children beneficially held the shares in BPL and were beneficiaries of the related trust. Pursuant to the loan agreement, BPL would loan funds to CTI to purchase a share portfolio. CTI would pay BPL 90% of the proceeds derived from the sale of any shares after the deduction of certain expenses.
CORPORATE-LAW-ELECTRONIC-BULLETIN-August-2005.docx