The Agency awarded $212,000 for false administration move
The federal court yesterday ordered a former The Agency board member pay $212,269 to the property broker for wrongly putting it into administration in January.
The value was split as:
- $140,505 being the cost of proceedings paid by The Agency’s listed entity AU1;
- $39,498 in administrator fees;
- $28,266 – the price of the injunction proceedings, and
- $4000 for submission charges.
The verdict is against MCL 105 Pty Ltd, directed by Mitchell Atkins, who via another entity – mortgage originator Magnolia Equities – controlled a majority 16.65pc stake in The Agency at the start of the year.
Magnolia put the real estate broker into voluntary administration on January 19 citing that it lost confidence in the board’s “unknown financial position” with a c$400,000 fee unpaid.
The next day, the federal court reversed that move – believing that a c$10,000 portion of that fee (a due diligence cost) was all that was in dispute.
As part of that verdict, The Agency had to pay $400,000 to the court while the matter – which the broker claimed was undertaken for the purposing of destabilising the company and forcing it to pay the $10,000 component – was negotiated (story continues below).
Resolved in resounding way: The Agency
“It is pleasing that this matter, instigated by former non-executive director Mitchell Atkins, has been resolved in such a resounding way,” The Agency managing director Paul Niardone said of yesterday’s judgment.
“In addition to the cost awarded in AU1’s favour, the $400,000 previously paid into court by AU1 will be returned…within coming days,” he added. “With the matter now closed we can focus on continuing to build our industry leading business and achieve positive outcomes for our shareholders, staff and clients”.
Mr Atkins – who quit The Agency board 18 months ago – no longer holds a substantial position in The Agency having sold 23 million shares in May.
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