Investors in the collapsed Banksia Securities stand to benefit financially if a recently launched class action against the collapsed firm is successful.By Darren Linton
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.
A male allegedly armed with a hunting knifed stole cash from a Euroa McDonald's last night.
It’s been a long journey for Tim Roadley but his dream of creating a multi-sport endurance event on the Murray River is now going to be a reality.
It was a big day for Jye McNeil on Sunday, not only celebrating his 19th birthday, but riding a double at the Tatura and Shepparton Racing Club’s meeting, including the big one, the Vraca and Varapodio Italian Plate (1600 m), on the Gerald Egan-trained Jetconi.
Sarah Beck is taking her family to New York after she won a trip for being the second highest fundraiser for the Cerebral Palsy Education Centre in October's Melbourne Marathon.
Rochester’s old Courthouse is undergoing a facelift thanks to a restoration grant.
Waste collection in Campaspe Shire will change for two weeks during the festive season.
Valley Park Farms' egg production facility is expected to increase production and staff after a $100 000 Victorian Government grant.
Murchison’s Jane Spencer’s first exhibition It Just Dawned On Me will be on show in Shepparton in the first half of next year.
Australian sporting legends are at Heathcote Golf Club this morning for the MS Ashes Trek golf day to raise awareness about multiple sclerosis.
Cobram Barooga Apex Club have raised more than $3600 for Irvin House at Cobram District Health.
Deniliquin RSL Club's A grade bowling championships came to a head on Sunday, with preliminary matches in B and C grade also taking place.
New Transport Accident Commission research has revealed why some young country drivers habitually take risks on regional roads.
State Member for Benalla Bill Sykes has thrown his support behind the government’s proposed new domestic animal ownership laws.
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.