The Australian Securities and Investments Commission has commenced civil penalty proceedings against former Super Retail Group CEO and Managing Director Anthony Heraghty, alleging breaches of directors’ duties and the provision of misleading information to the company’s board and the market. The regulator claims Heraghty failed to disclose and manage conflicts arising from an alleged undisclosed relationship with a senior executive, exposing the company and its shareholders to foreseeable financial, legal and reputational risks. ASIC alleges Heraghty continued supervising the executive and participated in decisions concerning their employment, remuneration and redundancy package. He also allegedly took part in board and committee discussions about related complaints and anticipated litigation, and provided or authorized disclosures that omitted the alleged relationship. ASIC is seeking declarations of contravention, pecuniary penalties and disqualification orders, with maximum penalties for the alleged breaches ranging from AUD 1.11 million to AUD 1.565 million per contravention.

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