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Friday 17 July 2020

20-163MR Clive Palmer charged over breaches of directors’ duties and fraud

Following an ASIC investigation, Mr Clive Frederick Palmer, 66 of Broadbeach Waters in Queensland, has been charged with two counts of contravening section 184(2)(a) of the Corporations Act 2001 (Act) - dishonest use of position as a director and two counts of contravening section 408C(1)(d) of the Criminal Code Act 1899 (Qld) – fraud by dishonestly gaining a benefit or advantage.

ASIC alleges that between 5 August 2013 and 5 September 2013, Mr Palmer dishonestly obtained a benefit or advantage for Cosmo Developments Pty Ltd and/or the Palmer United Party (PUP) and others by authorising the transfer of $10,000,000 contrary to the purpose for which the funds were being held. It is alleged that he dishonestly used his position as a director of  Mineralogy Pty Ltd (Mineralogy), a mining company owned by him, in obtaining that advantage.

ASIC also alleges that, between 31 August 2013 and 3 September 2013, Mr Palmer dishonestly obtained a benefit or advantage for Media Circus Network Pty Ltd and/or PUP by authorising the transfer of $2,167,065.60 contrary to the purpose for which the funds were being held. It is alleged that Mr Palmer dishonestly used his position as a director of Mineralogy in obtaining that advantage.

The maximum penalty for an offence under section 184(2) of the Act is $340,000 or imprisonment for five years, or both.

The maximum penalty for an offence under section 408C of the Code is five years’ imprisonment.  However, if circumstances of aggravation are established the maximum penalty at the time the offences are alleged to have occurred is increased to 12 years’ imprisonment.

The matter was first mentioned in the Brisbane Magistrates Court on 20 March 2020, at which time the matter was adjourned for further mention on 17 July 2020. On 17 July 2020 the matter was adjourned until 28 August 2020. 

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

Editor's note:

On 28 August 2020, the matter was mentioned in the Brisbane Magistrates Court and adjourned for further mention on 27 November 2020. 

Editor's note 2: 

On 27 November 2020, the matter was heard in the Brisbane Magistrates' Court and was adjourned for further mention on 11 March 2021.

Editor’s note 3:

On 9 March 2021, Clive Palmer filed a Claim with the Supreme Court of Queensland seeking an order that the prosecution in the Magistrates Court be permanently stayed.

Editor’s note 4:

On 11 March 2021, the matter was heard in the Brisbane Magistrates’ Court and was adjourned for further mention on 11 June 2021.

Editor’s note 5:

On 6 May 2021, Clive Palmer wholly discontinued his Claim filed on 9 March 2021 in the Supreme Court of Queensland.

Editor's note 6:

On 3 June 2021, Clive Palmer filed a Claim with the Supreme Court of Queensland seeking an order that the prosecution in the Magistrates Court be permanently stayed. 

Editor's note 7:

On 11 June 2021, the matter was heard in the Brisbane Magistrate’s Court and was adjourned for further mention on 17 September 2021.

Editor's note 8:

On 1 July 2021, ASIC, the CDPP and another person filed an application in the proceedings commenced by Mr Palmer on 3 June 2021 (Palmer stay proceedings, refer editor's note 6). The application seeks orders to set aside, stay or alternatively, strike out the Palmer stay proceedings.

The application made by ASIC, the CDPP and another person is listed to be heard on 23 August 2021 in the Queensland Supreme Court.

Editor’s note 9:

The application filed by ASIC, the CDPP and another person on 1 July 2021 (Commonwealth application) that was to have been heard on 23 August 2021 (refer editor’s note 8) has been listed for hearing on 22 September 2021.

Editor’s note 10:

The hearing of the application filed by ASIC, the CDPP and another person on 1 July 2021 (Commonwealth application) listed for 22 September 2021 has been vacated. The Commonwealth application has been listed for a directions hearing on 22 September 2021.

Editor’s note 11:

On 17 September 2021, the matter was mentioned in the Brisbane Magistrate’s Court and was adjourned for further mention on 10 December 2021. 

Editor's note 12:

On 21 September 2021, Mr Palmer filed an Amended Statement of Claim in the Palmer Stay Proceedings.

Editor’s Note 13:

At the directions hearing held on 22 September 2021 before the Queensland Supreme Court, the Commonwealth Application was listed for hearing on 7 February 2022.

Last updated: 23/09/2021 01:19