ASIC obtains declarations against Citrofresh
The Australian Securities and Investments Commission (ASIC) has obtained a declaration against former Citrofresh managing director and chief executive Ravi Narain that he engaged in misleading or deceptive conduct.
The Federal Court found that statements made to the Australian Securities Exchange (ASX) by Narain and by Citrofresh in September 2005 were misleading and deceptive, and in breach of the Corporations Act. The court also found that Narain’s conduct contravened his duty of care and diligence that was required as a director.
ASIC’s claim was dismissed in November 2007 when Narain successfully appealed the court’s decision on the grounds that the announcements made to the ASX did not relate to a financial product because the content did not refer to or deal with shares in the company.
ASIC appealed this decision and an appeals court found there was sufficient connection between the statements and the company’s shares because their content concerned the business of the company and were published on the exchange where the shares were traded.
A further application from Narain to appeal was refused by the High Court in December 2008.
The matter has been listed for further hearing on March 15 to consider whether Narain should pay a pecuniary penalty, whether he should be disqualified from being a company director, and to determine costs.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
