The Federal Court has dismissed a case brought by the Australian Securities and Investments Commission (ASIC) that alleged a director of Dixon Advisory and Superannuation Services had breached their duties in regards to decisions surrounding the insolvency of the advice group.
The corporate regulator stated it was considering the judgment handed down by Justice O’Callaghan today in regards to the case ASIC brought against Paul Ryan.
In that case, ASIC claimed Ryan’s involvement in decisions in the lead-up to the insolvency of Dixon Advisory were to the advantage of its holding company, E&P Operations Pty Ltd, of which Ryan was a director, and he failed to properly consider the interests of the advice firm’s creditors.
The civil proceedings commenced on 4 August after ASIC cancelled the Australian financial services licence of Dixon Advisory on 5 April 2023.
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.”
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