Saved Pages

Save pages and articles you’re most interested in to read later on.


Section 237 Corporations Act 2001
Applying for and Granting Leave

Section 237 of the Corporations Act 2001 (Cth) is ‘Applying for and Granting Leave’ and is extracted below.

If you require the services of a criminal defence team that specialises in corporate crime and compliance, call Sydney Criminal Lawyers today on (02) 9261 8881 to arrange a consultation.

Our criminal defence lawyers are vastly experienced in advising and representing corporations and individuals who are facing investigations for regulatory issues and proceedings for criminal offences, and our expertise in serious and complex cases means you can rest assured of receiving the most effective legal representation whatever your situation may involve.

Section 237 of the Corporations Act 2001 (Cth) is Applying for and Granting Leave and reads as follows:

Applying for and Granting Leave

(1)  A person referred to in paragraph 236(1)(a) may apply to the Court for leave to bring, or to intervene in, proceedings.

(2)  The Court must grant the application if it is satisfied that:

(a)  it is probable that the company will not itself bring the proceedings, or properly take responsibility for them, or for the steps in them; and

(b)  the applicant is acting in good faith; and

(c)  it is in the best interests of the company that the applicant be granted leave; and

(d)  if the applicant is applying for leave to bring proceedings–there is a serious question to be tried; and

(e)  either:

(i)  at least 14 days before making the application, the applicant gave written notice to the company of the intention to apply for leave and of the reasons for applying; or

(ii)  it is appropriate to grant leave even though subparagraph (i) is not satisfied.

(3)  A rebuttable presumption that granting leave is not in the best interests of the company arises if it is established that:

(a)  the proceedings are:

(i)  by the company against a third party; or

(ii)  by a third party against the company; and

(b)  the company has decided:

(i)  not to bring the proceedings; or

(ii)  not to defend the proceedings; or

(iii)  to discontinue, settle or compromise the proceedings; and

(c)  all of the directors who participated in that decision:

(i)  acted in good faith for a proper purpose; and

(ii)  did not have a material personal interest in the decision; and

(iii)  informed themselves about the subject matter of the decision to the extent they reasonably believed to be appropriate; and

(iv)  rationally believed that the decision was in the best interests of the company.

The director’s belief that the decision was in the best interests of the company is a rational one unless the belief is one that no reasonable person in their position would hold.

(4)  For the purposes of subsection (3):

(a)  a person is a third party if:

(i)  the company is a public company and the person is not a related party of the company; or

(ii)  the company is not a public company and the person would not be a related party of the company if the company were a public company; and

(b)  proceedings by or against the company include any appeal from a decision made in proceedings by or against the company.

Note:          Related party is defined in section 228.

The penalties                                                                                                              

The maximum penalty for the offence of Applying for and Granting Leave is:

6 months imprisonment and/or 25 penalty units (a Commonwealth penalty unit is currently $210).

However, it should be kept in mind that maximum penalties are reserved for the most serious cases.

Your legal team will be able to advise you of the essential elements the prosecution would need to prove in order to establish the offence, whether those elements are capable of being established in your particular situation, the most effective and efficient way forward and the likely outcome.

Choosing the right legal team to defend your reputation and interests can be a difficult process.

However, it is always important to look at a firm’s experience and results when making this decision.

At Sydney Criminal Lawyers®, we have extensive experience defending and winning some of the most complex criminal matters – so you can rest assured that you are in safe hands.

Our criminal law specialists will take the time in every case to carefully scrutinise all the evidence in order to identify problems with the prosecution case at an early stage in the proceedings.

Where issues are found, our lawyers will write to the prosecution asking to have the charges dropped on this basis – often sparing our clients the considerable time and expense associated with defended hearings.

However, should your matter proceed to court, our senior lawyers will represent you and present a strong defence case to maximise your chances of being found ‘not guilty.’

Our senior lawyers are highly skilled advocates who have been recognised for their expert knowledge of the criminal law, as well as their ability to obtain excellent results in difficult cases.

We can assist you in avoiding the harsh penalties imposed by the law if you simply wish to plead guilty – in these cases, our experienced advocates can prepare and present compelling sentencing submissions which focus on any positive factors of your case.

For the best defence in your case, get the experts on your side today. Call us now on
(02) 9261 8881 and book your FREE first conference
with our criminal law specialists.

Main Menu

Follow Us

Search Our Site enter search term and press GO

Saved Articles & Pages

APPOINTMENT BOOKING FORM * mandatory fields

Preferred date for conference
Preferred time for conference
Briefly describe your situation:
Do you have a court date?

Your Review & Rating * mandatory fields

Review Text *
Rating (optional)