Asic launches legal action against Frank Wilson

The corporate watchdog has launched legal action in the Federal Court against former Quintis managing director Frank Wilson, alleging he failed to disclose the loss of a major contract in 2017.

The Australian Securities and Investment Commission has started civil penalty proceedings against Mr Wilson for failing to complete his duties as a director.

Asic claims that, in early 2017, Mr Wilson was aware that the sandalwood producer had lost a key contract with Nestle-owned Galderma, but did not disclose the information to the board until May.

The watchdog also alleges that when Quintis responded to an ASX query in March last year, Mr Wilson allowed the company to release misleading information in relation to the status of the Galderma agreements.

“Asic is seeking against Mr Wilson declarations of contravention, civil penalty orders and an order prohibiting Mr Wilson from managing corporations for such period as the court thinks fit,” Asic said.

Quintis is not a defendant to the legal action.

The matter is listed for hearing later this month.

The news comes after creditors of the company finalised a $175 million recapitalisation deal last month that is likely to leave shareholders with no return.