Federal Court Impose Orders Regarding Centro Directors

The Federal Court has finally imposed its decision on the punitive measures to be taken against the Centro directors who had breached the Corporations Act by failing to disclose the company had billions of dollars of short-term debt in 2007. The former Centro CEO, Andrew Scott, has been fined $30,000 while its former CFO, Romano Nenna, has been banned from managing corporations for two years.

No other penalties were imposed against the non-executive directors who were also found in breach. Judge Middleton said that his decision was made with the primary consideration of general deterrence. He described his decision as recognising the seriousness of the breach of fiduciary duties but also took into account mitigating factors such as the conduct of the officers, the consequences of the breach and the impact it had on the officers. He explained that as a result of these factors, greater penalties would not bring about a great benefit either for society or the corporate world.

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