More directors breach duties from Youpla Group

详细摘要

Three more former directors of Youpla Group have been found guilty of breaching their duties following similar determinations from the Federal Court against chief executive Bryn…

Three more former directors of Youpla Group have been found guilty of breaching their duties following similar determinations from the Federal Court against chief executive Bryn Jones and director Ronald Pattenden.

The court found former board members Jonathan Law, Michael Wilson and Geoffrey Clayton breached their duties as directors of various of the Youpla Group companies. They were subsequently disqualified from managing corporations and ordered to pay pecuniary penalties.

Clayton received the lightest penalty, with a disqualification period of five years and a pecuniary penalty of $20,000, while Wilson has been disqualified for 10 years and will foot the identical pecuniary penalty.

Meanwhile, Law has been disqualified for six years and was fined $50,000 for his part of the offence.

In 2023, ASIC commenced proceedings against the five directors, alleging breaches of duties as directors of Youpla Group companies, formerly known as the Aboriginal Community Benefit Fund (ACBF).

Pattenden was disqualified for 15 years and fined $250,000, while Jones, who had disputed ASIC's claim, will learn his fate following the conclusion of the hearing against him, ASIC noted.

Youpla Group operated several funds providing funeral insurance, predominantly marketed to Indigenous Australians. The group went into liquidation in March 2022.

Commenting, ASIC commissioner Alan Kirkland said misconduct that harmed First Nations people was an enduring enforcement priority for ASIC.

"These directors failed in their responsibilities and their conduct contributed to serious harm to First Nations consumers," Kirkland said.

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