ASIC has launched civil penalty proceedings against former Quintis managing director, and company founder, Frank Wilson.
The Australian Securities and Investments Commission has launched civil proceedings in the Federal Court of Australia against Mr Wilson, former managing director of Quintis Limited, for failing to discharge his duties as a director under section 180 of the Corporations Act 2001.
ASIC is alleging that by failing to disclose to the Quintis Board of directors that key contracts with Nestle-owned Galderma (Galderma agreements) had been terminated, Mr Wilson did not discharge his duties to Quintis with the degree of care and diligence that a reasonable person in the position of managing director would exercise.
ASIC alleges that Mr Wilson was aware that the Galderma agreements had been terminated in early 2017 but the Quintis board of directors did not become aware until May 9.
ASIC further alleges that when Quintis responded to an ASX query on March 27, 2017, Mr Wilson allowed Quintis to release information regarding the status of the Galderma agreements that was misleading or deceptive.
ASIC is seeking against Mr Wilson declarations of contravention, civil penalty orders and an order prohibiting Mr Wilson from managing corporations for such period as the Court thinks fit. Quintis, the company, is not a defendant to the proceedings.
The matter has been listed for a further hearing on June 28.
ASIC’s investigation is ongoing.