Banning Orders and Fines for Prime Trust Directors
We are pleased to report that the Federal Court made orders on 2 December 2014 imposing disqualification periods and fines on Prime Trust directors. Directors received bans preventing them from managing corporations for periods ranging from just over 2 years in the case of Mr Wooldridge to 15 years in the case of Mr Lewski (although one director, Mr Clarke, who joined the Board shortly after the controversial listing fee resolution was passed, did not receive a ban). All directors were fined $20,000 except Mr Lewski who received a $230,000 fine. The directors were also ordered to pay ASIC’s legal costs, and we would expect the amounts involved for each director to be substantial and potentially far in excess of the typical $20,000 fine. We understand that at least two directors are currently considering an appeal.
There has been considerable media coverage of the Federal Court decision, and a selection of press articles is attached. We are planning to provide a comprehensive update of all matters in our next Unitholder Update, which we hope to distribute in the next fortnight.