NSW: Rich, Silberman allowed to appeal interim director ban

AAP General News (Australia)
04-02-2004
NSW: Rich, Silberman allowed to appeal interim director ban

SYDNEY, April 2 AAP - Former One.Tel directors Jodee Rich and Mark Silberman have been
granted leave to appeal against an interim order banning them from being company directors.

The pair successfully applied to the High Court today to appeal against an interlocutory
order by the Australian Securities and Investment Commission (ASIC).

The order immediately banned the men from being company directors, made them pay $92
million in compensation to One.Tel and hand over documents to the corporate watchdog.

But the men claimed they were protected by privilege which would prevent them exposing
themselves to penalties.

The order arose from current civil proceedings brought against them by ASIC.

Rich and Silberman are both former directors of One.Tel, which collapsed in May 2001.

Neither appeared in the High Court in Sydney today.

Lawyers for Rich and Silberman said in their application today that it was unusual
for the watchdog to ask for a compensation order instead of a fine.

"Another problem raised by your opponent is the rather unusual circumstances where
there has been no application for a civil penalty," Chief Justice Murray Gleeson told
ASIC counsel, Bret (Bret) Walker, SC.

The High Court granted the leave to appeal and set a hearing date for April 22.

The civil proceedings will begin in the NSW Supreme Court on July 5.

AAP klw/nf/lb/tnf

KEYWORD: ONETEL

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