ASIC won't appeal key Harold Mitchell case
The Australian Securities and Investments Commission (ASIC) has made clear to a Parliamentary Committee that it does not intend appealing a key Federal Court decision which saw former Tennis Australia director, Harold Mitchell, penalised $90,000.
Answering questions on notice from the House of Representatives Standing Committee on Economics, ASIC acknowledged that its decision not to appeal the case was based on its assessment that the prospects of success for an appeal were low.
ASIC said that the decision not to pursue an appeal had not been made by a single commissioner or senior executive but by the Commission collectively sitting in session.
Further, it said that its decision had taken into account the receipt of senior counsel’s advice that considered the judgement in its entirety.
ASIC had pursued action against Tennis Australia vice president Mitchell alleging he had breached his directors’ duties in connection with a 2013 decision by the Tennis Australia Board to award the domestic television broadcast rights for the Australian Open tennis tournament to Seven Network.
Following a five-week trial that concluded in December 2019 the Court found that Mitchell contravened section 180(1) of the Corporations Act on three occasions.
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