ASIC ponders key litigation loss
The Australian Securities and Investments Commission (ASIC) and its ability to pursue major legal action has again been thrust into the spotlight by a Full Federal Court decision substantially overturning its initial victory against directors of Prime Trust over alleged breaches of the Corporations Act.
ASIC has been left considering its legal position after the Full Court found the regulator had taken too long to bring its case against the Prime Trust directors, one of whom was former Federal Liberal Health Minister, Dr Michael Wooldridge.
ASIC late yesterday acknowledged the outcome of the Full Court and said it was reviewing the decision and would be "making no further comment at this time".
Australian Property Custodian Holdings Ltd was the responsible entity of The Prime Retirement and Aged Care Property Trust (Prime Trust) which collapsed in 2010 impacting thousands of investors, with ASIC pursuing action against the directors over alleged breaches of the Corporations Act.
However a crucial meeting of the directors had occurred in 2006 and the regulator had not commenced proceedings until more than six years' later in 2012, falling outside the statute of limitations under the Corporations Act.
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