Three former directors of collapsed property group Westpoint have been hit with asset preservation orders as part of new ASIC legal proceedings.
On Monday 30 June, ASIC commenced new proceedings against Norman Phillip Carey, Cedric Richard Palmer Beck, and Graeme Rundle for compensation of breach of directors’ duties.
Justice French made asset preservation orders in relation to Carey until 1 August 2008 but was not prepared to make specific orders against the Carey entities.
Carey was instead ordered to not “do any act by way of instruction, advice or expression of wishes to any company or third party which has the purpose or is likely to have the effect of reducing the value of any asset owned by him or under his control”.
Rundle has consented to asset preservation undertakings which apply until 14 July 2008.
Beck consented to asset preservation orders being made until 1 August 2008.
The proceedings were initiated by the corporate regulator on behalf of Ann Street Mezzanine Pty Ltd and York Street Mezzanine Pty Ltd.
The proceedings follow Justice Ray Finkelstein’s recent decision that ASIC did not have the power to take over original proceedings commenced by the liquidator of the two companies, PricewaterhouseCoopers.
Yesterday ASIC banned advisers from Bongiorno Financial Advisers (Aust) Limited, Dukes Financial Services Australia and Brighton Hall.
Fifteen licensed advisers and two unlicensed advisers who advised on Westpoint products have now been banned.
