FAS MD and past/present Board may or may not be heading down the same road with their Alliances as todays article below, parden the pun! Opens the door for Padbury shareholder action as well. DYOR, please.
Padbury directors banned for three years Nick Sas - The West Australian on August 19, 2016, 2:50 pm
The long-running saga of Padbury Mining’s false start to build a rail system servicing Oakajee Port and Rail came to an end yesterday when directors Gary Stokes and Terence Quinn were banned from managing corporations for three years and fined $25,000 each. In a judgment handed down following an Australian Securities and Investments Commission investigation, the Federal Court found Stokes and Quinn were “misleading and deceptive” when they announced in 2014 that they had secured $US6.5 billion to build the Oakajee port and rail project.
In handing down his judgment, Federal Court Justice Anthony Siopis said ASIC’s claims that the defendants had engaged in contravening conduct were vindicated.
He said the conduct of the two directors was a “serious departure from the standards expected of directors of a public company in a like situation”. “It is crucial to the maintenance of confidence in the Australian market that company directors ensure announcements made by their companies are not misleading, and contain all material information relevant to investors' assessment of deals being announced,” Justice Siopis said. “In this case the omission of significant conditions precedent and the identity of the funder were held to constitute breaches of the laws applying to listed companies.” Stokes and Quinn will also be forced to pay $200,000 towards ASIC’s costs.
FAS Price at posting:
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