Former public company director, Harry Hatch (Hatgikyriazis), of North Melbourne, Victoria, has been convicted and sentenced for failing to disclose the total number of Copper Strike Limited shares he held, contrary to the Corporations Act 2001.
Mr Hatch was sentenced to six months imprisonment to be released immediately after paying a $2,000 fine on the condition that he be of good behaviour for 12 months.
Mr Hatch appeared in the Melbourne Magistrate Court on 19 November 2024 and pleaded guilty to one charge of authorising omissions in documents required by the Corporations Act of his relevant interest in shares held in Copper Strike.
The Court heard that on six occasions between 6 September 2016 and 26 September 2019, Mr Hatch, as a director of Copper Strike, authorised the release of substantial holding notices and annual reports that were materially misleading.
ASIC Deputy Chair, Sarah Court said, 'As a director, Mr Hatch failed to fulfil his legal obligations, acted dishonestly and made false and misleading representations. Disclosure is fundamental to protecting Australian investors and ASIC will take action where these protections are ignored.'
Her Honour Magistrate Hartnett remarked that this type of offending committed by directors of publicly listed companies, will attract a sentence that would deter others from engaging in the same conduct, as they hold a position of trust.
Due to his conviction for the offence, Mr Hatch is disqualified from managing corporations for a period of five years.
Background
Mr Hatch was appointed as a non-executive director of Copper Strike on 6 September 2016. He resigned from the Copper Strike board on 3 January 2020.
Mr Hatch held shares in Copper Strike through Gasmere Pty Limited, a company which Mr Hatch has been the sole director and secretary of since 21 May 1996. These shares were disclosed as required under the Corporations Act.
Prior to and during his directorship, Mr Hatch used a brokering account belonging to an associate, to purchase additional Copper Strike shares, which were not disclosed to the market or to other officers of the company.
In order to pay for the undisclosed shares in Copper Strike, Mr Hatch used the bank account of Arden Health Supplies Pty Ltd. Mr Hatch has been the sole director and secretary of Arden Health Supplies Pty Ltd since 21 May 1996.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following an investigation and referral by ASIC (23-136MR).
Under the Corporations Act, a person has a 'relevant interest' in shares if, among other things, they:
- are the holder of the shares,
- have power to exercise, or control the exercise of, a right to vote attached to the shares, or
- have power to dispose of or control the exercise of a power to dispose of the shares.
