R v Panel on Takeovers, ex p Datafin (1987)

Court: Court of Appeal

Facts: The Panel on Takeovers and Mergers operates as a self-regulating body in the City of London, overseeing mergers and acquisitions. In this case, an applicant complained about a breach of the Panel's code by another company involved in the takeover process and was dissatisfied with the Panel's decision. The matter was initially brought before the High Court, which concluded that it lacked jurisdiction to review the Panel's decision, believing the Panel was not amenable to judicial review. This prompted an appeal to the Court of Appeal to determine whether the Panel's decisions could be reviewed. Issue: Whether the decisions of the Panel on Takeovers and Mergers, a private body, could be subjected to judicial review based on the standards applied to public law.

Held: The Court of Appeal held that the powers exercised by the Panel were public in nature, as they involved regulatory functions integral to government oversight of the financial sector. Consequently, the Panel had a duty to act judicially, and its decisions were amenable to judicial review. However, on the merits of the case, the Court found no grounds to quash the decision in question.

Key Judicial Statements: Sir John Donaldson MR stated: “The fact that the Panel is a self-regulatory body does not prevent it from being subject to judicial review. It is a body which has been established to perform a public function and is, therefore, amenable to the same principles of scrutiny that apply to public authorities” [8].

💡 LevelupLaw: significantly expanded the scope of judicial review in English law, establishing that private bodies exercising public functions could be held accountable through judicial review. It marked a shift towards greater oversight of self-regulatory bodies in the context of public interest.