On Monday 30 June 2008, ASIC commenced new proceedings against the directors of Westpoint companies for compensation of breach of directors duties.
These proceedings were initiated by ASIC on behalf of Ann Street Mezzanine Pty Ltd and York Street Mezzanine Pty Ltd and follow the recent decision of Justice Ray Finkelstein that ASIC did not have the power to take over the original proceedings commenced by the liquidator of the two companies, PricewaterhouseCoopers.
After issuing the new proceedings, ASIC made an application to the Federal Court in Perth for asset preservation orders against Mr Norman Phillip Carey, Mr Cedric Richard Palmer Beck, Mr Graeme Rundle and various entities associated with Mr Carey (the Carey entities). This application was heard by Justice Robert French on 30 June 2008 in Perth.
Justice French made asset preservation orders in relation to Mr Carey until 1 August 2008 but was not prepared to make specific orders against the Carey entities. Instead, he ordered that Mr Carey not “do any act by way of instruction, advice or expression of wishes to any company or third party which has the purpose or is likely to have the effect of reducing the value of any asset owned by him or under his control”.
Mr Rundle has consented to asset preservation undertakings which apply until 14 July 2008.
Mr Beck consented to asset preservation orders being made until 1 August 2008.
As foreshadowed in ASIC’s media release 08-54, all asset preservation orders made in the ASIC’s asset preservation proceedings in Federal Court Action WAD 83 of 2006 expired on 30 June 2008.
Editor's note
On Friday 1 August, ASIC filed a further six civil claims against former directors of Westpoint companies in the Federal Court in Melbourne. The actions were taken under section 50 of the ASIC Act and seek damages for alleged breaches of directors' duties.
The companies named in the proceedings are Bayshore Mezzanine, Bayview Heritage Mezzanine, Cinema City Mezzanine, Market Street Mezzanine, Market Street Mezzanine No. 2 and Mount Street Mezzanine.
The directors and officers involved in these proceedings are Richard Beck, John Dixon, Graeme Rundle, Norman Carey and Lynette Schiftan.