In brief: The Full Federal Court recently handed down its appeal decision overturning the trial judge, and finding that Fortescue Metals Group misled the market and failed to comply with its continuous disclosure obligations in connection with announcements to the ASX and the media in 2004. Partner Richard Harris (view CV) , Senior Associate Andrew Byrne and Lawyer Rima Hor comment on the implications for listed companies and their directors and officers.

• Relevant facts
• Misleading announcements
• Continuous disclosure
• Duty of care and diligence

Reproduced with permission of Allens Arthur Robinson and in accordance with their terms of use.

The change has been to introduce civil penalties as opposed to criminal penalties of up to $1.1 million against corporations and $220,000 against individuals who make false or misleading representations or engage in unconscionable conduct.

The benefit of this approach is the standard of proof is the civil standard (“balance of probabilities”), however, now monetary penalties can be imposed in addition to the usual civil remedies.

The second part of the reforms dealing with unfair contract terms will come into effect on 1 July 2010.

Brisbane Barrister – David Cormack

ONE-TEL founder Jodee Rich and the company’s former finance director Mark Silbermann have been awarded costs in a landmark win over the corporate regulator.

Read more in theNewLawyer and reproduced with permission.

Mr McCoy was convicted in May 2009 (refer 09-89AD) on five counts of forging cheques following an ASIC investigation into the collapse of Blueprint Developments (Aust) Pty Ltd.

Mr McCoy is now required to serve the remaining period of his sentence and will be due for parole on 18 August 2010.

Brisbane Barrister – David Cormack