The Federal Court has dismissed an application by Reginald Lance Williams to overturn the decision of the Companies Auditors Disciplinary Board (CADB) to cancel his registration as a company auditor and requiring him to pay ASIC’s costs of the CADB proceedings.
Following an application by ASIC, in December 2018 the CADB cancelled Mr Williams’ registration as an auditor for failing to carry out or perform adequately and properly the duties of an auditor in relation to his audit of the financial report of LM Managed Performance Fund for the year ended 30 June 2012 (see 19-084MR).
On 18 June 2025, Justice Perry of the Federal Court found that:
- Mr Williams had not established any error of law or jurisdictional error by the CADB in making the decision to cancel his registration as a company auditor, and
- the CADB is ‘properly regarded as an expert or specialist board and is therefore entitled to rely upon its expertise and specialised knowledge subject to the obligation to act in accordance with procedural fairness’.
Mr Williams was ordered to pay ASIC’s costs of the proceeding.
Background
The CADB is an independent statutory body given functions and powers under the Corporations Act 2001. The CADB’s disciplinary responsibilities include providing an incentive to registered auditors to maintain high professional standards, protecting the public and educating the profession by exercising its powers to cancel or suspend the registration of an auditor.
Editor's note 1:
On 14 July 2025, Mr Williams filed an appeal against the decision of Justice Perry dated 18 June 2025.