05-66 Director of Multiemedia limited pleads guilty
Tuesday 22 March 2005
Mr Clinton Henry Starr, of Brighton East, Victoria, has pleaded guilty to 25 charges brought by the Australian Securities and Investments Commission (ASIC), following an investigation by ASIC and after a referral from the Australian Stock Exchange (ASX).
Mr Starr was a director of the listed company Multiemedia Limited between November 2002 and November 2004.
Between 13 December 2002 and 27 November 2003, Mr Starr sold 28,750,000 shares and acquired 10,052,089 shares in Multiemedia. As a director and a substantial holder of Multiemedia, Mr Starr was required to notify the ASX of the sales and acquisition of the shares and the relevant changes in his substantial holdings of Multiemedia securities.
Mr Starr pleaded guilty in the Melbourne Magistrates Court to 22 charges of failing to notify the ASX within 14 days of any change in the director's interests in a listed public company, and three charges of failing to notify the ASX within two business days of the changes in his substantial holdings in a listed public company.
The Magistrate ordered that the 25 convictions against Mr Starr be recorded. in 'Investors in a listed company, and the market in general, have a legitimate interest in the trading by directors in the company. It is important that directors uphold their responsibilities to ensure market transparency and efficiency', ASIC's Deputy Executive Director of Enforcement, Mr Mark Steward said.
'Information about a director's holdings must be up-to-date and when these holdings change, investors must be able to understand the nature of the change. ASIC will prosecute directors who flout their obligations', Mr Steward added. Background Multiemedia's principal activity is development and distribution of internet and e-commerce enabling tools, and distribution of technology products, as well as satellite communications and web development services.
