The Federal Court has ordered Campbell Nicholas, former Chief Financial Officer and Company Secretary of Noumi Limited, to pay a $100,000 penalty and be disqualified from managing corporations for four years.
The penalty and disqualification order follow an earlier judgment by his Honour Justice Jackman, finding that Noumi contravened its continuous disclosure obligations. This related to the value of its inventories in its financial reports for the full year ending 30 June 2019 (FY19) and the half year ending 31 December 2019 (HY20), along with the overstatement of its HY20 disclosed revenue and disclosed profit.
Mr Nicholas was found to have been knowingly concerned in Noumi’s continuous disclosure breaches, breached his duties as an officer of Noumi and to have given false or misleading information to Noumi’s directors and auditors.
ASIC Deputy Chair Sarah Court said, ‘The matter represents a serious breach of Mr Nicholas’ legal and ethical obligations. Mr Nicholas was involved in the day-to-day management of the company and held a senior position which increases the seriousness of his conduct.’
‘Companies have a fundamental responsibility to ensure compliance with their continuous disclosure obligations. By failing to do so, they not only cause harm to investors by denying them the information they are entitled to, they also erode confidence in Australia’s financial markets.’
Mr Nicholas was also ordered to contribute to ASIC’s legal costs to be agreed or taxed.
Mr Nicholas did not file a defence and admitted the contraventions.
