09-229MR ASIC proceedings against Rich and Silbermann dismissed
Wednesday 18 November 2009
The New South Wales Supreme Court today dismissed ASIC's civil proceedings against One.Tel’s former joint Managing Director, Mr Jodee Rich and the company’s Finance Director, Mr Mark Silbermann.
The Australian Securities and Investments Commission (ASIC) commenced civil proceedings in 2001 against three executive directors and the non-executive chairman of One.Tel in relation the company’s collapse in 2001.
ASIC sought rulings from the court on the duties and obligations of officers to disclose a company’s financial position to the board and the market.
ASIC Chairman, Mr Tony D’Aloisio said the case should provide important guidance to executives and directors on the exchange of information between the board and management.
Additionally, the case has shed light on several important legal issues, notably the additional responsibilities of the chairman of a public company, particularly one with a finance/accounting background and considerable experience on public boards. It also identified the right of defendants in civil penalty proceedings not to give discovery or file witness statements until the conclusion of evidence by ASIC’s witnesses.
‘The case has also provided important guidance to ASIC on how to run similar matters in the future,’ Mr D’Aloisio said.
ASIC will review the lengthy judgement in detail and consider whether to appeal as soon as possible.
Background
Former One.Tel board members and directors, Mr Brad Keeling (One.Tel’s joint managing director) and Mr John Greaves (the company’s chairman) were also part of ASIC’s original proceedings.
However, both agreed to settlements with ASIC in 2003. Mr Keeling agreed to a ten-year disqualification from acting as a director and liability to pay compensation of $92 million (refer MR 03-099). Mr Greaves settlement involved a disqualification from being a director for four years and liability to pay compensation of $20 million (refer MR04-283).
More releases on One.Tel
ASIC Website: Printed 02/10/2010
