Charles Abbott, former Deputy Chairman of failed insurance giant HIH, appeared in a Sydney court last week charged with dishonestly misusing his position as a company director under the Corporations Act.

The Australian Securities and Investments Commission charge alleges that the night before HIH went into provisional liquidation in 2001, Mr Abbott dishonestly used his position to order a payment of $181,445 to his company, Ashkirk.

Mr Abbott claimed in the HIH Royal Commission he didn’t know at the time the company was going into liquidation. He said he gave the instruction at 4pm and learned of the decision to liquidate at 6pm.

But HIH liquidator Tony McGrath told the commission he informed the HIH board, including Mr Abbott, of the decision that afternoon. Ashkirk repaid the amount in 2003 when approached by Mr McGrath.

Mr Abbott was not required to plead, and was granted conditional bail. He will return to the Downing Centre Local Court on June 15.