The former chief executive officer of Western Australian hotel chain Compass Hotel Group has appeared before court following an investigation by the Australian Securities and Investments Commission (ASIC).

 

Bryan Raymond Northcote has been charged with three counts relating to breaching directors duties and submitting false and misleading documents to ASIC.

 

ASIC’s investigation focused on Mr Northcote’s activities while he was CEO and executive director of Compass Hotel Group Ltd (CHGL). CHGL floated on the Australian Securities Exchange on 3 January 2008 and operated a West Australian hotel chain consisting of 12 hotels and taverns. CHGL went into receivership in March 2011.

 

 

ASIC has accused Mr Northcote of withholding information from the CHGL board while using his position to gain a financial advantage. It is alleged that a company owned and controlled by Mr Northcote, Yard House Australia and New Zealand Pty Ltd (YANZ) entered into a conjunctional agreement with a hotel broker whereby it would receive 50% of all sales commissions paid by CHGL and vendors to the hotel broker for hotels purchased by CHGL.