Australian Securities & Investments Commission secures Federal Court findings against former Noumi chief over 2019 financial reporting failures

The Australian Securities & Investments Commission published an update on a Federal Court judgment finding former Noumi Limited managing director and chief executive officer Rory Macleod contravened the Corporations Act on a limited basis in relation to the company’s financial reporting for the year ended 30 June 2019 and the half year ended 31 December 2019. The Court found he breached his duties as a director and officer by failing to exercise reasonable care and diligence and by failing to take all reasonable steps to secure Noumi’s compliance with its financial reporting obligations. ASIC’s case focused on Noumi’s treatment of unsaleable inventory and its recognition of revenue from lactoferrin sales where key conditions had not been met. The Court found that Mr Macleod knew, or ought to have known, that Noumi’s financial reports did not properly reflect the company’s inventory and revenue position, including revenue recognised from lactoferrin invoices even though the product had not been delivered and other recognition conditions had not been satisfied. The Court dismissed ASIC’s claims concerning Noumi’s 30 June 2019 financial report for the period before November 2019 and related inventory representations. It also dismissed ASIC’s continuous disclosure case and its case concerning false or misleading information. The matter will return to Court for further case management on 27 August 2026.