David Muir pleaded guilty this week in the District Court of Western Australia on seven charges of making improper use of his position as a company director. The charges arose out of an investigation by the Australian Securities and Investments Commission (ASIC). Mr Muir was charged in relation to a directors meeting of Hallmark Gold NL (Hallmark) in October 1998 when a number of resolutions were made. Mr Muir, who resides in the ACT, was a director of Hallmark at the time. ASIC alleged that the prime purpose of the resolutions was to remove cash from Hallmark for the benefit of third parties known to Mr Muir. Entities controlled by associates of David Muir, and that benefited from the transactions, included Davis Samuel Pty Ltd, Kamanga Holdings Pty Ltd, Qancorp Pty Ltd and CTC Resources NL entities. An ASIC investigation found that, as a result of the resolutions: o Hallmark executed a retainer agreement with consultants, Davis Samuel Pty Ltd, for $350,000 a year for three years; o Hallmark purchased 8.2 million Kanowna Lights NL options for $656,000; o Hallmark purchased 3.6 million Kanowna shares for $720,000; and o Hallmark entered into a contract with Kanowna to exercise the Kanowna options for $1,640,000. Mr Muir’s co-directors, Mr William Forge and Mr Peter Clarke, were found guilty in March 2004 on charges of making improper use of their positions as company directors.
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