Not happy’: ASIC bans Gutnick from running corporations

Liam WalshReporter

Mar 8, 2024 – 3.30pm

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KEY POINTS

• Joe Gutnick has been banned from managing corporations for 4 years.
• ASIC says the ban is due to his actions in 3 failed companies.
• He is reviewing the decision with lawyers.

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“Diamond” Joe Gutnick has been banned from managing corporations for four years after scathing findings on the mining entrepreneur from the regulator.

The Australian Securities and Investments Commission (ASIC) on Friday said Mr Gutnick, 71, had acted improperly and failed to meet his obligations as a director.

It cited his role in three companies, including collapsed ASX-listed miner Merlin Diamonds and Axis Consultants.

Joe Gutnick is disqualified from managing corporations until March 2028. Jason South

ASIC, in its disqualification decision, listed claims including that Mr Gutnick had allowed Merlin to lend $13.7 million to Axis, causing detriment to Merlin and benefitting Axis.

He was also accused of exercising his powers as a director of Legend International Holdings after it was wound up. ASIC said Legend and Merlin owed $43.2 million to unsecured creditors, including Mt Isa City Council and Western Australia’s mines department.

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Mr Gutnick can appeal the decision, which disqualifies him from managing corporations until March 2028, to the Administrative Appeals Tribunal.

“I’m reviewing the decision with my lawyers,” he told AFR Weekend. “I’m not happy and I do care.”

He declined to comment on ASIC’s findings, saying it would be left up to his legal team’s review.

The decision marks another chapter in the tumultuous career of Mr Gutnick, who along with his interests in mining, was president of the Melbourne Football Club from 1996 to 2001.

His LinkedIn profile flags he was awarded the “Diggers award at the 1997 Diggers and Dealers Industry Awards”.

But he also declared himself bankrupt in 2016 following a stoush with an Indian fertiliser business, with creditors including related parties owed more than $300 million. He discharged that bankruptcy in a debt restructuring deal in 2018.

He has most lately been running Mazel Resources, a private company aiming to become a producer of critical mineral fluorspar in a Tasmanian project. Mr Gutnick said he could remain a shareholder in the company while other directors run its projects.