Dynamic Business Logo
Home Button
Bookmark Button

Babcock & Brown in strife for breaching duties: report

Babcock & Brown directors may have breached their duties and corporations law by operating whilst insolvent, reports The Australian.

An explosive new report from the company’s administrators, obtained by The Australian, found the investment bank may have been insolvent three months before it was placed into administration.

The administrators’ report, which will be made available to investors on August 17 claims that Babcock & Brown “became insolvent at the latest on or about 29 November 2008,” but the company was not placed into administration until 13 March.

The report adds: “Accordingly, the BBL Board should have acted at this stage to suspend trading in BBL listed securities; to make an announcement to the market regarding BBL’s solvency and the implications…[and] to place BBL into voluntary administration.”

According to The Australian, other claims contained in the report include conflict of interest, inadequate disclosure to investors, key risk management weakness, and possibly misleading statements in investment documents, amongst other things.

The report recommends the company be placed into liquidation.

What do you think?

    Be the first to comment

Add a new comment

Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

View all posts