ob体育 has commenced civil penalty proceedings in the Federal Court of Australia against Frank Cullity Wilson, former managing director of Quintis Limited (Quintis), for failing to discharge his duties as a director under section 180 of the Corporations Act 2001 (Cth).
ob体育 is alleging that by failing to disclose to the Quintis Board of directors that key contracts with Nestle-owned Galderma (Galderma agreements) had been terminated, Mr Wilson did not discharge his duties to Quintis with the degree of care and diligence that a reasonable person in the position of managing director would exercise.
ob体育 alleges that Mr Wilson was aware that the Galderma agreements had been terminated in early 2017 but the Quintis board of directors did not become aware until 9 May 2017.
ob体育 further alleges that when Quintis responded to an ASX query on 27 March 2017, Mr Wilson allowed Quintis to release information regarding the status of the Galderma agreements that was misleading or deceptive.
ob体育 is seeking against Mr Wilson declarations of contravention, civil penalty orders and an order prohibiting Mr Wilson from managing corporations for such period as the Court thinks fit.聽Quintis, the company, is not a defendant to the proceedings.
The matter has been listed for a further hearing on 28 June 2018.
ob体育鈥檚 investigation is ongoing.
Background
On 10 May 2017, Quintis released an announcement to the Australian Securities Exchange disclosing that the Galderma agreements had been terminated and that the termination had taken effect on 1 January 2017.
The announcement stated that the directors of Quintis had been advised of the termination on 9 May 2017, and were previously unaware. The Quintis share price dropped 43.93% on opening for trading after the announcement was released.
Quintis shares were voluntarily suspended from official quotation on 15 May 2017 and have not traded since.
On 20 January 2018, Quintis was placed into voluntary administration, with Messrs Richard Tucker, Scott Langdon and John Bumback of KordaMentha being appointed.聽On 23 January 2018, Mr Robert Brauer of McGrathNicol was appointed as receiver and manager of the assets and undertaking of Quintis.
Editor's note:
Following a case management hearing on 27 September 2018,聽a further聽hearing of the matter has been listed for 19 December 2018.
Editor's note 2:
A case management hearing is scheduled for 20 May 2020.
Editor's case 3:
A聽further case management hearing and interlocutory hearing聽is scheduled聽for聽19 June 2020.
Editor's note 4:
On 23 June 2020, ob体育鈥檚 interlocutory application to conduct the trial electronically was refused. .
A further case management hearing is scheduled for 2 September 2020.
Editor's note 5:
A聽further case management hearing is scheduled聽for聽17 September 2020.
Editor's note 6:
On 17 September 2020, orders were made at the case management hearing in relation to the conduct of a further interlocutory application, with聽the date to be confirmed.
Editor's note 7:
The next interlocutory hearing聽has been聽scheduled for 29 October 2020.
Editor's note 8:
The interlocutory hearing scheduled for 29 October 2020聽was adjourned pre-hearing until 3 March 2021.
Editor's note 9:
The聽date for the interlocutory hearing聽to be held on 3 March 2021 was vacated and rescheduled to 24 June 2021 at 10:15am.
A pre-trial conference is set for 5 August 2021 at 9.30am. The hearing on liability commences at 10:15am on 30 August 2021.
Editor's note 10:
On 23 September 2021,聽 the trial was adjourned until 10.15am on 20 October 2021 for closing submissions.
Editor's note 11:
Closing submissions were heard on 20 October 2021 and the decision has been reserved.
Editor's note 12:
In August 2023, the Federal Court found Mr Frank Cullity Wilson did not breach his duties as director regarding disclosure of the termination of key contracts (23-234MR).