INVESTORS may have grounds to sue the directors and auditors of Banksia Security Limited, a meeting was told today.Receiver Tony McGarth of McGarthNicol told investors at a meeting in Kyabram today they could expect to receive between 50 and 65 cents in the dollar on their investments but could recoup more money by pursuing a class action against BSL.
"There is an obvious issue around the role plays by the auditor," Mr McGarth said.
"There is a set of accounts that were signed off in September that said the company was in a surplus position of $24 million and today we are telling debenture holders that they are in a deficit in somewhere between $200 and $300 million.
"That's quite a significant change that requires addressing.
"That issue needs to be understood. There is a whole raft of laws around auditors and where they stand on issues of potential negligence. And I can tell you it's a complex process to get an economic outcome."
Mr McGarth said the immediate focus was on getting debenture holders the bulk of their estimated return as soon as possible.