See text below
EXCERPTS
...
The public examination of the collapse by ABC's administrators. held
in the Federal Court in Sydney, also heard that ABC's board received a
report in April 2008 stating the company would run out of cash by June
30 that year if it did not raise $300 million. This led to ABC selling
and handing its banks a secured charge over its remaining assets.
Dr Le Neve Groves told the court yesterday that she was stood
down by the company chairman, David Ryan, in July 2008 after Mr Groves
had received the order.
She told of the growing acrimony with Mr Groves that started in October 2007 and grew in intensity.
She was stripped of executive duties and spied upon by Mr Groves, and his sister.
''I was banned from certain executive meetings,'' Dr Groves said.
''I was told it was none of my 'something' business,'' she said, and
referred to Mr Groves treating her in an ''aggressive manner''.
She told the court all of her mail was opened by Mr Groves's
sister, who was employed by ABC Learning, while Mr Groves checked her
email from a screen in his office which accessed her computer.
She said other people were being monitored but not to the same
extent. ''I think I was pretty special in that way,'' Dr Groves said.
...
Another issue led to Mr Groves delivering her an ultimatum to agree
with everything at a company board meeting in May 2008 or face the
sack. Dr Groves had earlier received independent legal advice over
information that was to be presented to the board at that meeting.
When the counsel for ABC's administrator, Michael Cashion, asked
if she was concerned the board was being misled on the issue in
question, she replied: ''Yes.''
Dr Groves told the court she became aware of the sale of most of
ABC's US business in June 2008 only through media reports even though
her signature was on the documents which gave the banks security over
all ABC assets in return for them allowing the sale to go ahead.
Dr Groves could not confirm if it actually was her signature.
''In past circumstances within the company I have been aware my
signature has been signed [by someone else],'' she said and later named
Mr Groves.
In a separate action, Dr Groves is suing Mr Groves and margin
lenders for $64.2 million to cover the loss of shares allegedly lodged
as security for her former husband's margin loans. Part of her defence
is that she did not sign the documents which allowed her shares to be
used as security.
...
- Reprinted from the Sydney Morning Herald