find the latest legal job
Senior Associate - Competition, Policy & Regulatory
Category: Other | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Work with a well regarded Partner · Sydney CBD
View details
Commercial Litigation Senior Associate
Category: Litigation and Dispute Resolution | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Lawyers Weekly Australia Partner of the Year 2016, Insolvency
View details
MULTIPLEX Regional Legal Counsel (Vic) | 7 to 10 years + PQE
Category: Generalists - In House | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Career defining in-house role · Tier One international contractor
View details
Junior Lawyer - Personal Injury Law
Category: Personal Injury Law | Location: Parramatta & Western Suburbs Sydney NSW
· Highly specialized practice · Challenging role with great opportunities
View details
IR Advisor/Member Advocate
Category: Industrial Relations and Employment Law | Location: St Leonards NSW 2065
· Permanent (0.8-1.0 FTE) role in a developing team
View details
ASIC case puts directors on notice

ASIC case puts directors on notice

ASIC has launched legal action in the Federal Court against the directors, former directors and chief financial officer of the Centro Property Group.

THE Australian Securities and Investments Commission has launched legal action in the Federal Court against the directors, former directors and chief financial officer of the Centro Property Group. 


The move is the biggest by the regulator because it looks into the events during the financial crisis from mid-2007. Its action puts directors of other fallen companies on notice, including ABC Learning Centres, Allco Finance Group and Babcock & Brown.

ASIC said it was seeking declarations from the court that the directors and an officer breached their duties owed to entities within Centro, would be seeking orders to disqualify the directors and the officer from managing corporations and would ask the court to impose pecuniary penalties on them.

The ASIC action revolves around the financial reports of the Centro Group for the year ended 30 June, 2007, with the regulator contending that the reports contained material misstatements. 

Centro shares collapsed more than 99 per cent from the end of 2007 when it admitted that more than $2 billion of debt it had classified as long-term was in fact repayable much earlier. 

This is the second recent case being brought by ASIC against directors of companies. As the New Lawyer reported on Monday, ASIC alleges former Australian Wheat Board boss ANdrew Lindberg, who is standing trial in the Victorian Supreme Court, breached his duties to AWB by failing to stop about $300 million in kickbacks to Saddam Hussein's regime. 

ASIC alleges AWB made no effort to investigate whether the fees were justified. It claims Lindberg was aware, or should have been aware, of the payments. Lindberg, meanwhile, will argue he did not know of the payments. 


AS business commentator Robert Gottliebsen reported this week, both cases are a reminder that "it is very dangerous to turn a blind eye to an event taking place in your company". 

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

ASIC case puts directors on notice
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Human body, illegal organ trafficking, ALHR
Sep 22 2017
Australia poised to combat illegal organ harvesting: ALHR
The Australian Lawyers for Human Rights are calling for changes to the law so that organ trafficking...
Online service, barristers, BarristerSELECT, Stephen Foley
Sep 22 2017
New online service leverages barristers’ clerks to aid briefing
A new online tool has been launched to help NSW solicitors find the most suitable barristers for the...
NSW District Court judge, Tim Gartelmann SC, next appointment,
Sep 22 2017
Silk replaces outgoing NSW District Court judge
A barrister has been named as the next appointment to the NSW District Court, following the retireme...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...