CORPORATION LAW – AUSTRALIA

Guilty Gregg confronts jail time

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 1 & 16 : 12-Dec-18

Leighton Holdings’ former CFO Peter Gregg will be sentenced on 31 January after being convicted on two counts of falsifying the construction firm’s accounts. Gregg had pleaded not guilty to the charges of breaching section 1307(1) of the Corporations Act. Each offence carries a maximum penalty of two years in jail or a fine of $11,000. The case centred on a steel supply deal with a United Arab Emirates-based company in 2011 which involved two payments worth a combined $US15m. Gregg was Leighton’s CFO until 2014; he resigned as CEO of Primary Health Care in early 2017 to contest the charges.

CORPORATES
LEIGHTON HOLDINGS LIMITED, ASIAN GLOBAL PROJECTS AND TRADING FZE, PRIMARY HEALTH CARE LIMITED – ASX PRY, CIMIC GROUP LIMITED – ASX CIM, LEIGHTON WELSPUN CONTRACTORS PRIVATE LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DISTRICT COURT OF NEW SOUTH WALES

Commonwealth Bank admits it broke law over fees

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Original article by Sarah Danckert, Clancy Yeates
The Sydney Morning Herald – Page: 3 : 11-May-18

The Commonwealth Bank of Australia has issued a statement acknowledging that its financial planners had breached the Corporations Act by charging fees for services that were not provided. However, the bank has rejected several of the open findings of the senior counsel assisting the banking royal commission with regard to its financial planning division. Meanwhile, Westpac has rejected all of the open findings of the royal commission regarding its financial planning business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED, COMMONWEALTH FINANCIAL PLANNING LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RI ADVICE GROUP PTY LTD, M3 FINANCIAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DOVER FINANCIAL ADVISERS PTY LTD

Massive fines for corporate misconduct

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Original article by Richard Gluyas
The Australian – Page: 1 & 2 : 23-Apr-18

Australian Competition & Consumer Commission chairman Rod Sims says the banking royal commission’s revelations of misconduct in the financial services sector highlights the need for harsher penalties for corporate wrongdoing. He argues that such penalties should act as a real deterrent rather than merely being regarded by management and directors as the cost of doing business. A recent report by the OECD found that penalties for corporate misconduct in Australia are generally much lower than those of comparable countries. Treasurer Scott Morrison has also flagged tougher penalties for companies in response to scandals exposed by the royal commission.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VISY INDUSTRIES AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Corporate penalties to be tripled

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 23-Oct-17

The Federal Government will give incoming Australian Securities & Investments Commission chairman James Shipton greater powers to impose penalties on companies that do the wrong doing. The changes stem from recommendations by an ASIC taskforce and David Murray’s Financial System Inquiry. Amongst other things, the ASIC taskforce suggested that penalties for corporate wrongdoing be increased from $A1 million to $A3 million. ASIC has long been concerned that the extent of the penalties it can impose do not match those available to other regulators such as the Australian Competition & Consumer Commission and AUSTRAC.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF FINANCE, HARVARD UNIVERSITY, CREDIT SUISSE (AUSTRALIA) LIMITED, THE GOLDMAN SACHS GROUP INCORPORATED, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS

Directors face new penalties

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Original article by Ewin Hannan
The Australian Financial Review – Page: 7 : 20-Jun-16

The Australian Government will increase the maximum civil penalty for breaches of the Corporations Act if wins the 2016 federal election. Company directors will face fines of up to $A216,000 for serious breaches of the Act, compared with $A200,000 at present. The registered organisations bill will also impose the same penalty on union officials, who can be fined a maximum of $A10,800 at present. Unions will also be prohibited from paying the fines of officials who breach the law.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, ACTU, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

AWU sools watchdog on to Palmer Nickel

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Original article by Sarah Elks, Jared Owens, Rosie Lewis
The Australian – Page: 6 : 20-Jan-16

The Australian Securities & Investments Commission has been asked to investigate Queensland Nickel for potential breaches of the Corporations Act. Australian Workers’ Union state secretary Ben Swan has raised concern about the company’s donations to the political party of Clive Palmer, who is Queensland Nickel’s only shareholder. Swan also says Palmer may have been a "shadow director", despite resigning as a Queensland Nickel director in early 2015.

CORPORATES
QUEENSLAND NICKEL PTY LTD, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AURIZON HOLDINGS LIMITED – ASX AZJ, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, NATIONAL TEXTILES LIMITED, ONE.TEL LIMITED, UNIVERSITY OF SYDNEY, PALMER UNITED PARTY

Prime Trust directors banned

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Original article by Sarah Danckert
The Australian – Page: 21 : 3-Dec-14

Federal Court of Australia judge Bernard Murphy has handed down the penalties for the board members of the failed Prime Retirement & Aged Care Property Trust, following a successful civil case by the Australian Securities & Investments Commission. The breaches of the Corporations Act have resulted in bans from acting as a company director of two years and three months for chair Michael Wooldridge, 15 years for Bill Lewski, and four years each for Kim Jaques and Mark Butler. Fines of between $A20,000 and $A230,000 per individual have also been imposed

CORPORATES
PRIME RETIREMENT AND AGED CARE PROPERTY TRUST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ASX LIMITED – ASX ASX, FEDERAL COURT OF AUSTRALIA, VISION EYE INSTITUTE LIMITED – ASX VEI, PLACES VICTORIA, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, MONASH UNIVERSITY, UNIVERSITY OF MELBOURNE

Boards seeking new legal shields

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Original article by Annabel Hepworth
The Australian – Page: 20 : 31-Jul-14

Attorney-General George Brandis and other politicians are being lobbied by the Australian Institute of Company Directors. It wants to see the inclusion of an "honest and reasonable director" defence in the Corporations Act, to give company boards better protection in cases launched over alleged breaches of the law as well as of the Australian Securities & Investments Commission Act. The professional body notes that the majority of serious offences in the Corporations Act feature a dishonesty component. The call for reform is separate to any expansion of the current business judgment rule

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ASX LIMITED – ASX ASX

Harsh penalties sought for Prime directors

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Original article by Pia Akerman
The Australian – Page: 19 : 29-Jul-14

Ian Martindale QC, on behalf of the Australian Securities & Investments Commission, has urged Federal Court judge Bernard Murphy to impose the maximum fines as well substantial bans on former board members of the failed Prime Retirement & Aged Care Property Trust. The breaches of the Corporations Act should result in a 25-year ban from acting as a director for Bill Lewski, and one of seven to 12 years for ex-federal health minister Michael Wooldridge. Co-accused Peter Clarke meanwhile has sought to revise his previously given testimony

CORPORATES
PRIME RETIREMENT AND AGED CARE PROPERTY TRUST, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, VISION EYE INSTITUTE LIMITED – ASX VEI, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Blackham investors in bid to dump Gutnick

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Original article by Andrew Burrell
The Australian – Page: 20 : 22-Jul-14

Mining entrepreneur Joseph Gutnick in 2013 started building a stake of 27% in Western Australian gold producer Blackham Resources. However a dispute over his alleged failure to honour a funding deal that involved convertible notes worth $A6m in mid-July 2014 led to his removal as chair and a law suit. In response Gutnick requisitioned a stockholders’ vote to relieve MD Bryan Dixon and non-executive directors Greg Miles and Alan Thom of their duties, and to instead install Ian Daymond and Stuart Munroe on the board. In the latest step, 19% of investors have called for a meeting at which to oust Gutnick completely

CORPORATES
BLACKHAM RESOURCES LIMITED – ASX BLK, GREAT CENTRAL GOLD PTY LTD, POLO RESOURCES LIMITED, LIONGOLD CORPORATION LIMITED, ACADIAN MINING CORPORATION, SUPREME COURT OF WESTERN AUSTRALIA