The corporate cop has announced civil proceedings against three former officers of GIO Insurance, with ASIC Chairman David Knott accusing them of breaching their duties as officers of GIO Insurance during AMP’s 1998-99 takeover bid.

Former chief financial officer Geoff Vines and executives Frank Robertson and Tim Fox have been accused of playing “a significant role in the preparation of financial forecasts for the reinsurance business”.

“Each of the respondents was a Director of GIO Insurance and played a significant role in the preparation of financial forecasts for the reinsurance business which were included in GIO’s Part B statement issued on 16 December 1998,” Mr Knott said.  

The Part B statement forecast an $80 million before-tax-profit from the reinsurance business, but following the takeover GIO reported a before-tax loss of $759 million.

ASIC alleges the three men improperly used their positions and failed to exercise the duties of care and diligence required by the Corporations Law.  

ASIC is not empowered to claim compensation on behalf of the shareholders, some of whom are engaged in a class action over the issue. Mr Knott said findings and evidence involved in the ASIC proceedings “may assist to resolve issues in the class action”.