09-268AD ASIC's proceedings against Fortescue Metals Group Ltd and Andrew Forrest dismissed
Wednesday 23 December 2009
The Federal Court in Perth today has found that Fortescue Metals Group Ltd (FMG) and its CEO Mr Andrew Forrest did not engage in misleading and deceptive conduct or fail to comply with their continuous disclosure obligations. As a result the Court also found that Mr Forrest did not breach his duties as a director of the company.
The proceedings relate to a series of announcements FMG made to the market between 23 August 2004 and 9 November 2004 concerning certain framework agreements with three major state owned Chinese companies.
When ASIC brought the case it said that the importance of the case lay in examining the responsibility of listed companies and their executives to keep the market properly informed in relation to disclosable agreements (refer MR 09-55).
ASIC is assessing whether or not it will appeal the decision.
Background
ASIC commenced civil penalty proceedings against FMG and Mr Forrest in the Federal Court in Perth on 2 March 2006. The trial started on 6 April 2009 before Justice Gilmour and went for 5 weeks. ASIC had sought civil penalties from FMG and Mr Forrest and for the Court to consider disqualifying Mr Forrest from acting as a director.
ASIC Website: Printed 09/06/2010
