ASIC action against Dixon director dismissed
The Australian Securities and Investments Commission (ASIC) is considering its options after having its case against Dixon Advisory and Superannuation Services Pty Ltd director, Paul Ryan, dismissed in the Federal Court.
ASIC had alleged breaches of directors’ duties on the part of Ryan.
It said it had alleged Ryan breached his duties as a director by his involvement in decisions made at a time when Dixon Advisory was approaching insolvency.
ASIC alleged those decisions were to the advantage of Dixon Advisory’s holding company, E&P Operations Pty Ltd (of which Mr Ryan was a director), and he failed to properly consider the interests of Dixon Advisory’s creditors.
Commenting on the court decision, ASIC Deputy Chair Sarah Court said, “We took this case because directors have responsibilities under the law to act in the best interests of their company, and this includes considering the interests of creditors when the company is facing insolvency.
“ASIC remains committed to taking enforcement action where appropriate and expects directors to meet their governance obligations, including where they serve on the boards of multiple companies in a corporate group.”
She said ASIC is considering the judgement.
If the Dixon Advisory group can get away with ignoring a $19m loan owed to Dixon Advisory by its parent in order to avoid paying this money to creditors, then that sets a terrible precedent that is very concerning for the CSLR. How were E&P able to get away with this and what did ASIC do wrong in pursuing this matter? Did they make the mistake of going after the director, rather than going after the company. We need answers and this needs to be fixed!
Seems Illegal Phoenixing of a $19m asset is not so illegal?
And has ASIC tried in any way to chase the 39 Advisers & 3,000 clients Dodgy Dixon’s Phoenixed to E&P also for zero dollars $$ ?
Advisers must refuse and revolt on mass against bailing out hopeless ASIC via CSLR for allowing this Dixon’s MIS fiasco to unfold over a decade with zero cares or recourse.
What a load of crapola
ASIC probably should have spent more of my money on a better lawyer. Don’t really understand why they didn’t since its advisers paying for it and not them.
ASIC can’t do their own job, it’s simple. How about ASIC follow the recommendations of the ASIC inquiry and dissolve itself into a minimum of 2 branches. I still think the better recommendation was to dissolve ASIC entirely and give their prosecuting powers to the AFP. ASIC have all this baked in legislation about giving them special powers to investigate but it’s still no where near effective enough compared to the powers of the AFP. Reduce the obligations of ASIC and give the financial prosecution duties to the AFP, we are talking about financial crime here, this should be in the hands of the AFP.
They still need to properly investigate the 200 submissions made that the ASIC Report 2024 came from & until now, nothing! They permanently banned a financial planner based on insurance churning & ruined his life & family. The evidence was severely manipulated & evidence was incomplete. Ow! He was an employee & his ex boss collected everything. Truth is the Truth.