Billionaire mining magnate Andrew Forrest has won the right to continue his appeal against a court ruling that found he had misled investors over seven years ago.

 

The appeal will see Mr Forrest contend the finding with the Australian Securities andInvestment Commission (ASIC) in the High Court, with a date yet to be set.

 

Mr Forrest’s victory is essential to him maintaining his position as chairman of Fortescue Metals Group, with a defeat likely to lead to a ban on him acting as a director.

 

The Federal Court ruled that Mr Forrest had engaged in false and misleading conduct in a ruling in February. However, the court has recently granted him leave to appeal after hearing preliminary hearings from lawyers for Mr Forrest and the ASIC.

 

The accusations of misleading conduct date from Mr Forrest’s claims of binding contracts being signed with Chinese firms, relating to construction deals in Western Australia’s Pilbara region.

 

"ASIC claimed Mr Forrest knew that there was a material difference between what the market had been told and what actually appeared in the agreements but ...continued making misleading statements over the six month period," the commission said.

 

Mr Forrest’s lawyers argued that he had made he had operated on reasonable belief that the contracts were binding.