I'm not saying that this is the case with CVI, but one of the usual causes of action that could be available depending upon all the circumstances would be misleading and deceptive conduct.
The misleading and deceptive conduct cases are under the Trade Practices Act. They usually also rely on other causes of action. Such causes of action could be available if, for example, there was a misleading prospectus upon which shareholders relied in making the decision to purchase shares to their detriment.
Insofar as "illegality" is concerned, I think that it would depend upon the nature of the act. Having said that, there is generally a different burden of proof in civil matters and civil matters; that is, civil matters generally need only be proven on the balance of probabilities whereas criminal matters generally need to be proven beyond reasonable doubt. Accordingly, even if a criminal case were unsuccessful and civil case could still potentially be successful.
Directors of companies have both common law and statutory duties (the latter principally being pursuant to the Corporations Act). If you want to have a flick through the Corporations Act, it is available at www.austlii.edu.au.
Notwithstanding the above, and even if there is any case against directors, it is quite possible that they have protected their assets.
CVI Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
