Agribusiness

Former AWB boss hit with fine, disqualification

Grain Central, April 10, 2017

THE Supreme Court of Victoria has ordered the former chairman of AWB Limited, Trevor Flugge, to pay a pecuniary penalty of $50,000 and be disqualified from managing corporations for a period of five years following the Court’s finding that he contravened s180(1) of the Corporations Act.

Trevor Flugge

The orders follow the Court’s judgment delivered in December 2016 which found that Mr Flugge had breached his duties as a director of AWB in connection with payments made to the Government of Iraq while that country was subject to United Nations (UN) sanctions.

As part of that judgment, the Court found Mr Flugge failed to make adequate enquiries about the propriety of the payment of inland transportation fees and, as a consequence, failed to stop AWB engaging in improper conduct in paying the inland transportation fees to the Government of Iraq.

ASIC commissioner John Price said: “The case highlights that company directors and senior management have a positive duty to chase down allegations of misconduct by their company. It also demonstrates that if necessary ASIC will pursue difficult, complex cases over a lengthy period of time to bring poor corporate conduct to account.”

See: http://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-110mr-court-orders-penalty-against-former-chairman-of-awb-limited/

Source: ASIC

HAVE YOUR SAY

Your email address will not be published.

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Grain Central's news headlines emailed to you -
FREE!