Demise of Trustees Executors and Agency Company Ltd (From Stains on a White Collar: Fourteen Studies in Corporate Crime or Corporate Harm, P 15-30, 1989, Peter Grabosky and Adam Sutton, eds. -- See NCJ-122651)

• NCJ Number: 122653
• Author(s): P Grabosky
• Date Published: 1989
• Length: 16 pages
• Sale Source: Federation Press (Distributed by Gaunt)
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: Australia

Annotation

The collapse of a large trustee company in Australia cost thousands of people millions of dollars and led to a reform of the law related to trustee companies.

Abstract

The Trustees Executors and Agency Company was the first company formed in Australia to provide professional management of the estates of widows, orphans, and other dependent persons. Its outstanding reputation and close regulation by government resulted in its attracting investments from a variety of other interests as well. In the 1970's, the company was tempted by the property boom in Australia and shifted from its traditionally conservative investments to massive investments in large development projects. In 1982, the property market began to falter, and the company soon went bankrupt, costing investors substantial losses. An investigation revealed substantial irregularities in the management and oversight of the company. Subsequent law reforms require increased disclosures and restrictions on certain types of investments. 21 reference notes.