Investors in the collapsed Banksia Securities stand to benefit financially if a recently launched class action against the collapsed firm is successful.DARREN LINTON January 9, 2013 4:20am
All Banksia investors are part of the class action lodged with the Victorian Supreme Court.
Commercial lawyer Rob Crowe from Riordan Legal in Shepparton is acting for lead plaintiff Laurence Bolitho.
But Mr Crowe said all 16
‘‘I reckon it is a very strong case,’’ Mr Crowe said.
A writ for the group action was filed in the Victorian Supreme Court on Christmas Eve.
The writ alleges Banksia Securities and Cherry Fund were not run in a proper and efficient manner.
The action also names as a defendant the Sydney-based The Trust Company.
It is accused of failure to adequately supervise and investigate the financial position and viability of Banksia Securities and Cherry Fund.
The auditor of the failed companies, RSD Chartered Accountants of Bendigo, is also being pursued for failure to adequately audit the books or report any breaches of law to the Australian Securities and Investment Commission.
Five directors are alleged to have failed to adequately manage the financial position and viability of the two companies and protect the interests of investors.
The directors are Geoffrey Grenville Skewes, of Warrnambool, Patrick John Godfrey, of Kyabram, Nicholas Livingston Carr, of Geelong, Neil Stewart Mathison, of Geelong, and Peter William Keating, of Melbourne.
The class action will be run by leading Melbourne barrister Norman O’Bryan, a senior counsel with extensive experience in commercial law.
Mr Crowe said the Melbourne legal team now had the full list of debenture holders and investors could expect to receive a letter next month outlining the case.
‘‘There is a huge amount of leg work, the discovery will be huge,’’ Mr Crowe said.
Mr Crowe said it was important for debenture holders to understand they were not exposed to further financial loss by being a part of the group action.
‘‘If this action were unsuccessful there is no possibility of a cost order being made against any plaintiff other than Laurie Bolithio,’’ he said. ‘‘If the action fails they are no worse off, but if it succeeds they will share on a pro-rata basis the funds recovered.’’
Before mediation or trial takes place, debenture holders will be given an opportunity to opt out of the case.
Mr Crowe said he expected the case could reach court-ordered mediation by early next year, but if it went to trial, it would be 18 months away.
A website is also being established to keep Banksia investors informed.
The start of the planned burning season has resulted in an increase in false alarm calls to emergency services.
The Yarrawonga Mulwala Under 16s have claimed their first ever Under 16 premiership on the back of a big score on day one.
Bill Milner of Tatura recently decided to have a test done at Screen For Life in Kyabram.
The Bunnaloo Red Cross folded last month after 75 years in operation.
C4R will work with Campaspe Shire Council to develop a steering committee to help clubs with their proposals.
A woman was killed in a single-vehicle crash at Wyuna yesterday morning.
Former first-class cricketer to coach and play for his new home.
A man was due to appear in court today of numerous charges, including firing a firearm in a public place.
Police are investigating an accident at Burramboot on the Heathcote-Rochester Rd in which four people were killed last night.
Cobram Agricultural Society is reassessing its annual fun run after a 60 per cent decrease on last year’s entries.
Teenager Rowan Smith took his amateur record to 1-1 after a unanimous points decision on Saturday night.
The fruit industry is becoming weary of being told of huge opportunities in markets in Asia by Australian governments which cannot negotiate free trade agreements to get access.
The Benalla Showgrounds is ready for the upcoming football season following the installation of AFL standard goal posts.
Discover unbelievable local deals from local businesses every week in the Goulburn and Murray Valley area with Leapon.com.au!
Search properties for sale or rent across North Central Victoria and Southern NSW. Visit your local website for local homes....
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.