Murray Bridge grain trader, Brenton Strauss, has appeared in the Murray Bridge Magistrates' Court on two charges, brought by ASIC, of breaching his directors’ duties.

ASIC alleges that Mr Strauss, of Murray Bridge, South Australia, failed to exercise his powers as company director in good faith and in the best interests of a corporation and used his position dishonestly with the intention of gaining an advantage for another person. 

At the time of the alleged conduct in March to April 2014, Mr Strauss was a director of grain trading business Sapphire (SA) Pty Ltd (Sapphire), which traded under the name of River City Grain Co.

The first charge alleges that Mr Strauss reassigned grain contracts between Sapphire and another company without the knowledge or consent of the other company prior to placing Sapphire in voluntary administration.

The second charge alleges that Mr Strauss directed monies that were due and payable to Sapphire to another company knowing that the other company had no entitlement to the monies.

The charges were brought against Mr Strauss following an ASIC investigation into his conduct as the director of Sapphire.

Mr Strauss did not enter a plea but asked for an adjournment to obtain legal advice.

The matter was adjourned for further mention to 22 August 2016 at Murray Bridge Magistrates' Court.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

Mr Strauss has been charged with two counts under section 184 of the Corporations Act.

On 14 March 2014, Anthony Christopher Matthews of Anthony Matthews and Associates was appointed as Administrator to Sapphire, at the request of Mr Strauss. 

On 21 May 2014, the Administrator was appointed Deed Administrator after creditors resolved that Sapphire execute and enter into a Deed of Company Arrangement. 

Subsequently, at a meeting on 12 February 2016, the creditors voted to place Sapphire into liquidation and Mr Matthews was appointed the company's liquidator.

Editor's note 1:

At a mention on 22 August 2016, the matter was adjourned for further mention until 19 September 2016.

Editor's note 2:

The matter has been further adjourned until 17 October 2016. 

Editor's note 3:

At a mention on 17 October, 2016 the matter was adjourned until 5 December 2016.　

Editor's note 4:

On 5 December 2016, Mr Strauss failed to appear at the mention hearing.  The hearing Magistrate issued a warrant to remain on file until 12 December 2016.  Counsel for Mr Strauss subsequently advised that Mr Strauss had made an error as to the date of his appearance and confirmed that he will appear, as instructed, on 12 December 2016. 

Editor's note 5:

Mr Strauss entered a not guilty plea at Murray Bridge Magistrates' Court on 12 December 2016. The matter has now been set for a pre-trial conference on 7 March 2017.

Editor's note 6:

The matter has been adjourned for a further pre-trial conference on 2 May 2017 at Murray Bridge Magistrates' Court.

Editor's note 7:

On 2 May 2017, the matter was again adjourned until 23 May 2017 for pre-trial conference at Murray Bridge Magistrates' Court.

Editor's note 8:

On 23 May 2017, the matter was again adjourned until 4 July 2017.

Editor's note 9:

The matter was adjourned to 1 August 2017 for a further pre-trial conference.

Editor's note 10:

The matter was adjourned until 4 September 2017.

Editor's note 11:

The matter was further adjourned until 9 October 2017.

Editor's note 12:

On 9 October 2017, the matter was adjourned until 13 November 2017.

Editor's note 13:

On 13 November 2017, the matter was further adjourned until 29 January 2018.

Editor's note 14:

On 29 January 2018, following submissions from the defendant and the CDPP, the matter was listed for pre-trial conference on 20 March 2018.

Editor's note 15 (amended)

On 20 March 2018, in the Murray Bridge Magistrates Court, Mr Strauss indicated his intention to plead guilty to a charge of performing or exercising a function or power as an officer of a company under administration, in breach of s437C(1) of the Corporations Act.

The matter was adjourned to Adelaide Magistrates Court on 14 May 2018 at 10:00am.

Editor's note 16

Editor's note 15 has been amended to correct information stating that on 20 March 2018, Mr Strauss had formally entered a plea of guilty to a charge of performing or exercising a function or power as an officer of a company under administration, in breach of s437C(1) of the Corporations Act. In fact, Mr Strauss indicated an intention to plead guilty but did not formally plead guilty. Mr Strauss is expected to formally plead guilty at the next hearing on 14 May 2018.

Editor's note 17:

This matter has been relisted to an earlier date of 8 May 2018 at 10am.

Editor's note 18:

The matter has been further adjourned to 27 July 2018.

Editor's note 19:

The matter has been adjourned to 5 October at 11.30am
in the Adelaide Magistrates' Court.

Editor's note 20:

On 5 October 2018, Mr Strauss pleaded guilty to acting as an officer of a company while it was under external administration. Refer 18-316MR for more information.