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Now defunct and previously ASX listed company Quintis is back in the firing line after ASIC announced it has launched legal proceedings against former Quintis managing director Frank Wilson.
The corporate watchdog will allege that Wilson failed to discharge his duties as a director in 2017.
The proceedings allege Wilson failed to disclose to the Quintis board of directors that key contracts the company maintained with Nestle-owned Galderma had been terminated.
According to ASIC, Wilson was aware that the key Galderma agreements had been terminated in early 2017, but did not tell the board until 9 May 2017.
The watchdog also alleges that when Quintis responded to an ASX query on 27 March 2017, Wilson allowed the company to release information about the Galderma agreements that was misleading or deceptive.
After Quintis finally publicly announced that the Galderma agreements had been terminated, its share price dropped 43.93 per cent.
ASIC is seeking declarations of contravention from Wilson, civil penalty orders and an order prohibiting Wilson from managing corporations for a period of time.
Quintis shares were voluntarily suspended from the ASX on 15 May 2017 and have not traded since.
The company was placed into voluntary administration in January 2018, with a receiver and manager of Quintis being appointed soon after.
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Business News Australia
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