3. May 2011 14:22
This was a first directions hearing for an application by ASIC for the imposition of pecuniary penalties against directors of Storm Financial Limited (“Storm”), Mr and Mrs Cassimatis. The application involved allegations relating to the conduct of Mr and Mrs Cassimatis as directors of Storm.
His Honour stated that he had previously heard an application made by ASIC for the winding up of Storm and, in determining that application, expressed a particular view in respect to a memorandum circulated with a proposed deed of company arrangement: [1-2].
The Defendants’ solicitor foreshadowed the making of an application for His Honour to be disqualified from hearing the present application on the basis that a reasonable apprehension of bias existed: .
His Honour agreed that there was a compelling case for him not hearing the present pecuniary penalty proceedings on the basis that authorities set out that there be an abundance of caution that justice be seen to be done: [7-8].
Based upon his Honour’s findings and observations necessarily given in hearing the winding up proceedings, His Honour determined that he should not hear nor determine the present proceedings: .
His Honour was of the opinion that he was not precluded from making any non-controversial procedural orders as a result of his deciding not to hear the present proceedings: .