FORMER Murray Goulburn managing director Gary Helou and former chief financial officer Bradley Hingle have been disqualified from managing corporations following an ASIC investigation.
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The Federal Court ordered Mr Helou be disqualified for three years and Mr Hingle for two years following their involvement in Murray Goulburn and MG Responsible Entity's continuous disclosure contraventions.
The court found Mr Helou and Mr Hingle contravened sections of the Corporations Act 2001 from March 8, 2016 to April 27, 2016.
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The court heard the men failed to disclose there was likely to be a material decrease in Murray Goulburn's earnings guidance for the 2016 financial year, which was published on February 29, 2016.
The court found Mr Helou and Mr Hingle also failed to disclose the earnings guidance for the 2016 financial year was unlikely to be achieved from March 8, 2016 until April 27, 2016.
ASIC started proceedings in the Federal Court against Mr Helou and Mr Hingle on June 20 last year.
Mr Helou and Mr Hingle admitted to contravening sections of the Corporations Act in an agreed statement of facts and admissions.
Mr Helou and Mr Hingle made applications to seek leave to manage certain unlisted proprietary companies while disqualified. Justice David Beach granted leave.
"The objectives sought to be served by the continuous disclosure regime relate to the efficiency and reliability of the capital markets and the accountability of participants in those markets," Justice Beach said in his judgement.
"Contraventions of the continuous disclosure regime are serious."
The Federal Court ordered Mr Helou to be disqualified until November 2023. Mr Hingle's disqualification period would end in November 2022.
Mr Helou and Mr Hingle were also required to pay a portion of ASIC's investigation and legal costs.
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