A former director in previously ASX-listed Bellamy’s Australia Ltd (ASX: BAL) is facing criminal charges for failing to disclose holdings in the company.
Jan Cameron, who was a director of Bellamy’s between May 2007 and May 2011, has been charged by ASIC for failing to disclose her interests in Bellamy’s and lodging a misleading substantial holder notice.
Cameron made her fortune as the founder of Kathmandu Holdings Ltd (ASX: KMD), an outdoor clothing and equipment company. She was a shareholder in Bellamy’s until it was sold to China Mengnui Dairy Company last year. In 2017, Cameron used The Black Prince Foundation to successfully roll the Bellamy’s board after the company almost collapsed in 2016.
ASIC alleges that around 1 August 2014, when Bellamy’s became a listed company, Cameron began to have a substantial holding in Bellamy’s. Cameron is alleged to have had a holding of 14 million shares in Bellamy’s through her own holdings and those of her associate, The Black Prince Foundation. This holding represented 14.74% of Bellamy’s total issued capital. ASIC alleges that Cameron failed to disclose the interest as required under the Corporations Act on or about 5 August 2014.
ASIC further alleges that on or around 15 February 2017, Cameron lodged an initial substantial holder notice with Bellamy’s that was misleading. This was because the notice failed to properly disclose her true and complete relationship with The Black Prince Foundation and the basis on which she had an interest in 14 million Bellamy’s shares.
The Black Prince Foundation is domiciled in Curaçao, a Dutch Caribbean Island known as a tax haven. Cameron has previously denied links to The Black Prince Foundation, telling the Australian Financial Review she didn’t have “any connection” with the entity. Cameron’s connection was ultimately revealed in 2017 when a tracing notice revealed Cameron and her lawyer were directors and shareholders of The Black Prince Foundation.
What are the charges?
Cameron has been charged with breaching sections 671B(1) and 1308(2) of the Corporations Act. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions with the charges listed for a mention hearing in the Hobart Magistrates’ Court in March.
Section 671B of the Corporations Act requires a person to lodge a substantial holder notice with a listed company and the ASX where they hold shares that gives them 5% or more of voting power. A failure to do so can result in up to 6 months in prison or a fine of 25 penalty units (around $5000), or both.
Section 1308(2) of the Corporations Act provides that a person must not make a false or misleading statement in a document required by the Corporations Act or which is lodged with ASIC. The maximum penalty for breaching this section is five years in prison or a fine of 200 penalty units (around $42,000) or both.
The post Former Bellamy’s director facing criminal charges appeared first on Motley Fool Australia.
If you're looking to add growth to your portfolio, don't miss these ASX growth shares for 2020 and beyond.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares to buy now
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2020
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020