Panel Releases Final Guidance On Costs Orders [19/08/2002] The Takeovers Panel

19 August 2002

PANEL RELEASES FINAL GUIDANCE ON COSTS ORDERS

The Takeovers Panel advises that it has released a Guidance Note on the Panel's powers to make costs orders in Panel proceedings. The final version follows public consultation on a draft that the Panel released in January 2002.

The Director of the Panel, Nigel Morris, said that the Panel was pleased to have received support from the market for the underlying policy of the draft. The final Guidance Note takes into account six submissions on the draft, which were received from Australian law firms and from the ASIC. The text has been revised in some areas in response to feedback.

The final Guidance Note is based on the Panel's underlying policy that:

  • costs orders are made infrequently by the Panel, reflecting its function to resolve disputes expeditiously and informally;
  • the Panel has the power to accept written undertakings to pay costs ; and
  • costs will generally be limited to those actually, necessarily, properly and reasonably incurred in the course of proceedings before the Panel;

and the condition in section 657D(2 ) of the Corporations Act that the Panel may only make a costs order after it has made a declaration of unacceptable circumstances.

The Panel has also published on the Panel's website a paper that provides details of the Costs Sub-Committee's response to responsespublic submissions to the consultation draft. This document is on the Panel's website under the new "Consultation" tab, which is where the Panel will publish Consultation Drafts and Public Consultation Response Statements in the future.

The Panel appreciates the many hours of time that its members give to it without recompense on a number of guidance and other projects. The Panel and the Panel Executive wish to thank the Costs Sub-Committee for their work on this Guidance Note. The Costs Sub-Committee comprised: Ilana Atlas, Annabelle Bennett, Denis Byrne and Jeremy Schultz.

The Costs Guidance Note and the Public Consultation Response are available at:

http://www.takeovers.gov.au/Content/guidance/costs_orders.asp
http://www.takeovers.gov.au/Content/consultation/costorders_response.asp

Nigel Morris
Director, Takeovers Panel
Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3501
Email: nigel.morris@takeovers.gov.au