Australia's Securities and Investment Commission has cleared Tony Johnson, deputy chairman of Banksia Wines, over his dealings in the company's shares.

The commission launched an inquiry into possible breaches of the Corporations Act in the acquisition by Johnson of more than 100,000 shares ahead of a takeover bid by Lion Nathan.

The commission said it had completed its investigation and no further action would be taken. Johnson said he had acted entirely within the law.

The shares were acquired over several days to September 18 after Banksia's financial results were released to the market. At the same time the chairman, John Lamb, and managing director Keith Smith presented the results to Lion Nathan which discussed a takeover proposal on September 21 with the bid announced on September 27.