Two executives are in trouble for not disclosing market-sensitive information in a timely manner.
The Australian Securities and Investment Commission (ASIC) announced they have begun proceedings in the Federal Court of Australia against Murray Goulburn Cooperative and the Murray Goulburn Responsible Entity Managing Director, Gary Helou, and Bradley Hingle, the former CFO.
According to the regulator, the allegations relate to breaches of the Corporations Act and breaches in director duties and proceedings related to MGRE’s February Announcement of 2016.
The breaches, as listed in the official ASIC announcement, include:
failing to adequately monitor the financial position and performance of MG and MGRE against the February Earnings Guidance;
failing to inform the Board before 26 April 2016 of information that indicated the February Earnings Guidance was unlikely to be achieved;
causing or otherwise permitting MG and MGRE to make misleading statements in the February Announcement; and
causing or otherwise permitting MG and MGRE to breach their continuous disclosure obligations.
In December 2017, the Murray Goulburn entities paid $650,000 in penalties for breaches of the ASX Code regarding continuous disclosure obligations.
“ASIC will take action to disqualify directors and officers who cause a company to contravene its market disclosure obligations, or who are involved in the company’s contravention,” ASIC Commissioner Cathie Armour said.