Nenna v ASIC; Dishonest Application held Irregular and Legal

 

In anticipation of a disqualification order being made by the court under s 206C of the Corporations Act against Romano George Nenna in the much publicised Centro Director’s case, Mr Nenna gave notice of an application under s206G of the act to manage two particular corporations of which he was a director. 

The Federal Court in Nenna v Australian Securities and Investments Commission [2011] FCA 1193 has ruled to allow Mr Nenna leave to manage one of the companies, RGN, on the condition that it must not engage in any activities other than as trustee of the Nenna Family Superannuation Fund.

The Court held that in the case that s 1322(4)(a) of the Corporations Act did refer to ‘irregularities’ as its name would imply, the world ‘irregularity'  itself cannot be limited to acts that are inadvertent or accidental in nature. The court found that an irregularity could occur as the result of a deliberate act or omission even where the person concerned had acted dishonestly.

To this extent, the court held that Mr Nenna’s application under s206G, while not honest, nevertheless met the requirements of the act.

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