How CountPlus took legal action against departing principals



Accountancy-based financial advice group, CountPlus initiated legal action against a number of people with whom it parted company last year over what it saw as breaches of their undertakings when they left the business.
What is more, the people who were legally pursued by the company paid to settle the matter – the amounts of which will become evident on the company’s balance sheet.
The company’s actions were revealed in a letter to shareholders which was released to the Australian Securities Exchange (ASX) which said that, during the last financial year, the firm had “commenced proceedings against certain former principals in relation to their post-employment restraints”.
However, it seems that the legal action was actually settled before the issues went to court.
The ASX announcement stated: “These court proceedings were settled and CountPlus accepted settlement sums – some of which will be payable over the next reporting period – as appropriate amounts.”
“CountPlus takes matters of this nature extremely seriously and will act to protect our shareholders, member firms and clients and people,” the company said.
News of the hard-line legal approach against former principals came at the same time as CountPlus reported a 33 per cent increase in net profit to $2,956,000 with the board declaring a final dividend of one cent per share fully-franked.
Asked to comment on the litigation mounted against the former principals, CountPlus chief executive, Matthew Rowe, said it related to breaches of employment arrangements and non-solicitation.
“It was about calling out the wrong behaviour,” he said.
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.