FORMER Murray Goulburn boss Gary Helou has been banned by the Federal Court from managing corporations for three years.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
However, the ex-dairy co-op managing director was granted leave to keep managing five corporations including 8 Pulses Food, his focus since resigning from Murray Goulburn in April 2016.
At the same time, Justice Jonathan Beach disqualified Murray Goulburn's former chief financial officer Bradley Hingle from managing corporations for two years.
The judge said allowing Helou to keep oversight of other companies was based on them posing "no real risks to shareholders, creditors, employees or to the public".
The co-op, which operated a dairy at Kiewa, subsequently collapsed.
It was found that between March 8 and April 27 in 2016 the pair did not provide material relevant to earnings to the market.
Justice Beach found on multiple occasions during that period they failed to update the market that sales forecasts for milk powder sachet orders were unrealistic.
"In the domestic market, Costco was not taking all of its allocated sachet volumes, (and) Woolworths had indicated that some stores were overstocked with sachets," Justice Beach said.
NEWS FROM COURT:
Efforts to lift exports faltered with executive Albert Moncau travelling to China that March and telling Helou that "unfortunately the traction we're getting is not good enough to achieve our expected results".
Justice Beach described Helou and Hingle's offending as "serious" with the non-disclosure over 50 days longer than in other cases.
An order to pay ASIC's legal costs was made against each man with Helou required to pay $30,000 and Hingle $25,000.
It finalises Federal Court action against the pair, with two class actions settled.
Helou registered 8 Pulses, a vegan health-food snack business, in September 2016.
It has two full-timers and up to eight casuals at leased premises in western Sydney.
