MOUNT OXIDE CASE

Dominion, Volume 9, Issue 2747, 15 April 1916, Page 5

MOUNT OXIDE CASE

NEGLIGENCE OF DIRECTORS HEAVY FINES IMPOSED. By Telegraph—Pre £<3 Association—Copyright (Eec. April 14, 9.5 p.m.) Sydney, April 14. In delivering judgment in the Equity / Court on the Mount Oxide case, Judge Harvey held that all the directors were implicated in the transaction, and exhibited gross and culpable negligence, . ; rendering tliem liable to a breach of duty as directors. He fixed the dam- . ages against the. directors at £20,000, • added, also for £650 commission paid in connection with the transaction, and ruled that there was no .case against, the defendants,. J. Earle Hermann and J. Earle Hermann,' Limited.' The case was commenced in the : i Equity Court by the Mount Oxide Mine, Ltd., against the directors of the company, in respect to alleged negleot in tie control and management of the ' , company's affairs. The case involved certain transactions with the J. Earle. Hermann Company, and alleged that' though complaints had been made, the directors took no steps ,to terminate the management or control of the business by Hermann. On these grounds it was asked that defendants. be ordered j to pay £25,000, or the amount of lo6S; ; sustained by reason of, their, alleged. ' negligence as directors. . i