Former Compass boss facing ASIC charges

Former Compass Hotel Group chief executive Bryan Northcote has been charged with three counts relating to the breach of directors duties and submitting false and misleading documents to the Australian Securities and Investments Commission.

The charges relate to Mr Northcote’s activities between October 9, 2007 and April 22, 2008, at the helm of Compass.

ASIC alleges that Mr Northcote dishonestly withheld information from the Compass board and used his position to gain financial advantage.

It is also alleged that a company controlled by Mr Northcote, Yard House Australia and New Zealand, entered into an agreement where it would receive 50 per cent of all commissions paid to by Compass.

ASIC also alleges that Mr Northcote submitted misleading documents to ASIC in October 2007, whioch falsely claimed he had resigned from Yard House.

The matter will return to court on December 4.

Mr Northcote is facing a penalty of up to five years imprisonment and or a fine of $220,000 for breaching directors duties, and a fine of $22,000 and or five years imprisonment for submitting false documents. 

The Compass Group fell into receivership in March last year after struggling to repay its debts after lodging a $3.4 million loss for the half year to December 2010.

The hotel portfolio includes the iconic Albion Hotel in Cottesloe, the Kalamunda Hotel and the Carine Glades Tavern.