Ducon Inquiry Finds ‘Fortuitous’ Purchase

Press, Volume CII, Issue 30312, 12 December 1963, Page 21

Ducon Inquiry Finds ‘Fortuitous’ Purchase

SYDNEY, December 11. Directors of Ducon Industries, Ltd., today refused to reply to a report by the New South Wales Registrar of Companies (Mr F. J. Ryan) on the Ducon firm’s takeover. At his Strathfield home, Mr Clifford Searle Gittoes, chairman of directors of Ducon, said: “I am disgusted that a Government official can table a report like this and sneer, without the person being sneered at having the opportunity to rebut it.” Mr Gittoes said neither of his daughters, Valda Florence Gittoes non Gloria Louise Gittoes, would make any comment on the report Another Ducon director. Mr Raymond E. Purves, said:

"After I have read the report perhaps then I might have something to say.” In his report, Mr Ryan found the chairman of Ducon had given instructions for £lO,OOO worth of shares in the company to be bought in the names of his two daughters. Mr Ryan said the buying order was given the day before a takeover offer from Plessey, Ltd He also found that a second Ducon director, Mr R. F. Purves, was director of another company which I bought 48.0G0 Ducon shares shortly before the takeover. Mr Ryan said he was “led to the conclusion that Mr Gittoes seriously made use of information acquired by virtue* of his position as

director of Ducon." Mr Ryan found that the buying of shares and options "was fortuitous and no more." Nc proceedings would be instituted against any officer of Ducon, he said. The Ducon directors did nc* make their statements under a relevant section of the Companies Act, Mr Ryan said. They had at first refused to ><e interviewed, but later their solicitors waited on th* Attorney-General with their statement® on the affair. The Attorney-General (Mr R R. Downing) said today: “The recommendations of th* Registrar-General will b* referred to the next meeting of th standing committee of Attorneys-General. This wIU b- on January 23 and 24.’’