Former Gunns boss John Gay has lost his bid to make the Australian Securities and Investment Commission pay for his successful application to run some companies.

The convicted insider trader had been banned from running businesses for five years as part his penalty for insider trading.

The costs decision today follows Gay's successful application yesterday to manage two family companies despite the ban.

In making the costs order, Justice Robert Pearce said Gay had applied for and been granted an indulgence yesterday allowing him to run his family companies, and that the Australian Securities and Investments Commission (ASIC) should not be deterred from performing its duties.

ASIC opposed the family management application, arguing it would dilute Gay's insider trading sentence.

The watchdog is now considering the terms of the management order.

Gay looks forward

Gay has declared he is looking forward to again running timber companies in Tasmania.

In a statement, Gay said he was looking forward to working with his dedicated team to manufacture and export speciality veneer, using his knowledge and commitment to value adding Tasmania's forest resource.

At the time of his hearing for insider trading charges, Gay told the court he was ill.

A spokeswoman today said he was still receiving treatment and also hoped more treatment options would become available.

She said he was suffering from inoperable cancer, and on treatment that was managing the illness.

The crime

Gay was banned from running any company when he was convicted last year of selling 3.4 million Gunns shares while he had price sensitive information.

He was also fined $50,000 for the 2009 share sale, which netted $800,000.

The former timber boss launched a Supreme Court bid last month to partially overturn the management ban so he could run family companies, Speciality Veneers and JEG Management.

Gay told the court in March that the private companies would not survive beyond three years if he was not involved in their running.

Justice Pearce agreed that Gay was the driving force behind the companies, which were relatively small.

He was satisfied there was no risk to the public and no appreciable risk of re-offending.

Although Gay's offence was serious, it was less serious than other insider trading cases because Gay was not deliberately dishonest.

Gay was granted leave to run the companies on condition he was not sole director.

Justice Pearce said Gay had suffered "public condemnation and loss of reputation" and would remain disqualified from managing any other company.

He said Gay's skill and expertise could not readily be replaced and he rejected ASIC's argument that he could act as a consultant.

It was revealed last month that the Commonwealth Director of Public Prosecutions may pursue proceeds of crime action to recover the money from the 2009 share sale.

The timber company Gunns collapsed in 2012, owing banks $500 million.

The Greens leader, Kim Booth, believes Gay's sentence for insider trading was too lenient.

"I know that there's a lot of dissatisfaction in Tasmania amongst the community," he said.