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ARTICLE · 14 DECEMBER 2014

Boardroom behaviour under the spotlight

Holding Redlich
Holding Redlich
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The Federal Court has now issued its penalty judgment in the high-profile Prime Trust/ APCHL. case.

AustraliaCorporate/Commercial Law
Lyn Nicholson
Lyn Nicholson
Sylvia Fernandez (Formerly With Holding Redlich)
Sylvia Fernandez (Formerly With Holding Redlich)
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The Federal Court has now issued its penalty judgment in the high-profile Prime Trust/ Australian Property Custodian Holdings Ltd (APCHL) case. This follows the decision on liability late last year in which it subjected boardroom decision making processes to scrutiny.

The breach of duty concerned a decision by the APCHL board in 2006 to amend the constitution of the Prime Trust to introduce or amend fees payable to the APCHL, which was owned by entities associated with Mr Lewski, one of the directors.

Penalties:

  • The director who did not disclose a conflict of interest and did not abstain from voting on the relevant resolution, Mr Lewski was disqualified for 15 years and fined $230,000. ASIC had sought a lifetime ban.

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