04-283 ASIC reaches agreement with John Greaves in One.Tel proceedings
Monday 6 September 2004
Mr Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission (ASIC), today announced that ASIC has reached an agreement with Mr John Greaves, a former non-executive director and chairman of One.Tel Limited (One.Tel), in the Supreme Court proceedings against him.
Mr Greaves is one of four defendants in the proceedings brought by ASIC following the collapse of One.Tel in May 2001. The other defendants are Mr Jodee Rich, Mr Mark Silbermann and Mr Bradley Keeling. Mr Keeling settled ASIC’s civil claim against him in March 2003.
Previously, Mr Greaves had sought to strike out the claim brought against him by ASIC on the basis that the duties of a chairman were not, at law, as extensive as ASIC wished to establish. In February 2003, Justice Austin ruled against Mr Greaves on this point.
Under the agreement with ASIC, Mr Greaves has admitted to contraventions of the Corporations Law between January 2001 and 30 March 2001 in relation to the discharge of his duties as a non-executive director, and the chairman, of One.Tel.
Pursuant to the agreement, ASIC and Mr Greaves made joint submissions to Mr Justice White at hearings on Tuesday 31 August and Thursday 2 September. As a result of the hearings and submissions, Mr Justice White made orders that Mr Greaves:
- be prohibited from managing a corporation for a period 4 years;
- be found liable for the compensation of $20 million to One.Tel; and
- be ordered to pay ASIC’s costs of $350,000.
As part of the terms of agreement, Mr Greaves admits that during the period January 2001 to 30 March 2001, he failed to take the steps that he should have in order to ensure that he and the board of One.Tel properly monitored management and were aware of the true financial position of the company.
It has never been part of ASIC’s case that Mr Greaves acted in any way dishonestly in relation to the performance of his roles at One.Tel.
ASIC will not be commenting further on this matter.
ASIC’s proceedings against Mr Rich and Mr Silbermann are continuing.
End of release
Download a copy of the enforceable undertaking
ASIC Website: Printed 02/10/2010
