Storm clients divided over company deed

Founders call for DOCA to be passed

By Kate Kachor
Tue 17 Mar 2009

A call by Storm Financial founders to approve the firm's proposed deed of company arrangement has divided former clients.

Former Storm Financial (Storm) clients have been left divided over their decision to approve the collapsed advisory firm's proposed deed of company arrangement (DOCA).

Former Storm founder Emmanuel Cassimatis called on the firm's former staff and clients late last week to save the firm from liquidation by approving its proposed DOCA.

"It's quite apparent from the outset that the SICAG [Storm Investors Consumer Action Group] consistency was probably polarised for or against the principals of Storm and consequently it may be reasonable to assume that the efforts to succeed in having people register their proxies in favour or not will follow those lines," SICAG joint chairman Mark Weir said.

However, while some clients may struggle with whether to approve Storm's DOCA, there are many clients who believe they have no choice but to register their approval, according to Weir.

"However, there is another thing that needs to be factored in and that is the number of victims we have are just about at the pits of their despair and it's only natural that people might see this and ... grasp at some opportunity to restore their circumstances," he said.

By signing the DOCA, former clients will be able to join the Storm Recovery Group, Cassimatis said.

According to details of the DOCA, the Storm Recovery Group will streamline a client's claim against Storm, and Storm's claims against insurers.

"This DOCA includes you and your circumstances. The DOCA provides for both these claims to move forward and pays for the legal costs so you do not have to pay for them," Cassimatis said.

Former Storm clients and staff have until Monday 23 March to lodge their vote in favour of the firm's DOCA, he said.

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