On 7 August 2020, the Administrative Appeals Tribunal (AAT) set aside ASIC’s decision to disqualify Mr Kenneth Wen Hsi Lee from managing corporations in the matter of Lee and Australian Securities and Investments Commission [2020] AATA 2661 (7 August 2020). Read the Tribunal’s decision.

The AAT determined that, even though the discretion to disqualify under 206F was enlivened, having weighed-up all the considerations the correct or preferable decision was that Mr Lee should not be denied the opportunity to be a director.

Background

Mr Lee was a former director of S.E.T Services Pty Ltd (SET) and Sydney Project Group Pty Ltd (SPG), both wound-up land-owning companies involved in a property development known as ‘Skypoint Towers’ in Lidcombe, New South Wales.

On 15 October 2019, ASIC made an order disqualifying Mr Lee from managing corporations for a period of two years.

On 31 October 2019, ASIC’s disqualification order took effect after service of the order on Mr Lee.

On 2 December 2019, Mr Lee applied to the AAT for review of the decision.

On 7 August 2020, the AAT set aside ASIC’s decision.

Further background information can be found in ASIC media release 19-310MR entitled ‘ASIC bans former director of property development companies from managing corporations’.

ASIC had previously published a reference to the AAT’s decision on its website on 17 August 2020, by way of an Editor’s Note made to 19-310MR.