6.1 The Australian Securities and Investments Commission’s (ASIC) Power to Ban directors ASIC may apply to the court for a declaration of contravention of a civil penalty provision such as a director’s duty under section 1317E. Once a declaration has been made, ASIC can seek, for example, a pecuniary penalty order under section 1317G or a disqualification order under section 206C. ASIC is permitted to commence separate civil proceedings if it wishes to pursue civil remedies following an unsuccessful prosecution.62 ASIC is able to disqualify directors from managing corporations for certain periods of time due to the directors’ contravention of their general, statutory or constitutional duties. For example, in a statement dated 5 December 2006, ASIC banned nine directors of failed companies for their individual breaches, including trading while insolvent, uncommercial and fraudulent transactions, failure to exercise duties in good faith and in the best interests of the corporation, failure to maintain proper financial records, failure to pay taxes due to the Australian Taxation Office (ATO), failure to pay statutory debts, and failure to provide administrators with a statement of company affairs.63

Mr. Stephen Vizard, the defendant who was a director of Telstra, one of Australia’s largest public companies 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