NSW: Court orders stop to director s advertisements

AAP General News (Australia)
08-21-1999
NSW: Court orders stop to director s advertisements

A court order has scuttled a big advertising campaign by an NRMA director in which he
claimed the New South Wales insurance giant lost $50 million in one share transaction.

The Supreme Court has ordered the director, IAN YATES, be restrained from publishing the
statement in television and radio advertisements that were due to run today and tomorrow.

Justice KIM SANTOW issued the orders yesterday after lawyers for the NRMA argued the
statements by Mr YATES were misleading and deceptive.

Justice SANTOW said that on any view of the matters, the transaction of sale compared with
the historic cost yielded not a loss but a profit.

Justice SANTOW also said the statements breached Mr YATES' duties as a director of NRMA.

Mr YATES placed the advertisements, which ran on TV last week, urging NRMA members to vote
for Motorist Action Group candidates, who oppose demutualising the company's insurance arm, in
an October board election.

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KEYWORD: NRMA (SYDNEY)

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