June 25, 2019 / 8:35 AM / 4 months ago

UPDATE 1-Australian corporate regulator takes court action against former Murray Goulburn bosses

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June 25 (Reuters) - Australia’s corporate regulator said on Tuesday it had started civil proceedings against former executives of agricultural co-operative Murray Goulburn for breaching certain disclosure obligations on the Australian Securities Exchange (ASX).

The Australian Securities and Investments Commission (ASIC) said in a statement the proceedings were against Gary Helou, former managing director, and Bradley Hingle, former chief financial officer, over announcements made to the ASX in February 2016 regarding profit guidance and a farmgate milk price.

Helou and Hingle had both left the company in April 2016, after large losses were made when the company had then downgraded its outlook and slashed the price at which it was buying milk from farmers.

In December 2018, Helou was penalized about A$200,000 ($139,200) after Australia’s competition regulator took Murray Goulburn to court over misleading farmers in the 2016 disclosures.

Murray Goulburn is listed on the ASX as MG Unit Trust . The company said in a separate statement that it had not been named as a party to the proceedings.

Helou and Hingle could not be immediately reached for comment. (Reporting by Ambar Warrick in Bengaluru; Editing by Jacqueline Wong & Kim Coghill)

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