ASX Announcements And Waiver Of Privilege

The Federal Court in TerraCom Ltd v ASIC [2022] FCA 208 found that a company waived the legal professional privilege attaching to a report prepared by PwC in letters to shareholders and an ASX announcement which conveyed the proposed conclusion of the subject matter of the report. The decision is a reminder of the difficulties that can arise when balancing the need to keep shareholders informed against the desire to avoid waiving legal professional privilege.

IN BRIEF

• TerraCom Limited (TerraCom) claimed legal professional privilege over a report prepared by PwC. The report was seized by an ASIC warrant (in the context of an investigation of suspected Corporations Act 2001 (Cth) breaches by TerraCom and its current and former officers and employees).