Former NRMA Insurance Chairman Nick Whitlam has been banned from being a company director for five years and ordered to pay $20,000 for breaching his duties as a director. The charges arose after Mr Whitlam failed to cast 3973 proxy votes at NRMA’s AGM in 1998. This enabled the passing of a resolution on increasing directors’ fees.

Justice Gzell of the NSW Supreme Court found Mr Whitlam breached Corporations Law sections on acting honestly, improper use of a position and duty as a proxy holder.

But Mr Whitlam maintains his innocence and intends to appeal. He told radio station 2UE that the fact he is the son of the legendary Gough Whitlam meant he received more attention. “I have no doubt that they [ASIC] pursued me because my name was Whitlam,” he said. “It not only hurts me… it hurts my family at large, it hurts my father. It’s designed to hurt my father.” Perhaps ASIC Chairman David Knott was surprised, but he wasn’t letting it get him down.

The outcome “reinforces the accountability of directors who disregard the standards of conduct expected of them under the law”, he said. “ASIC welcomes the fact that the court has again demonstrated its preparedness to impose penalties against company directors who breach their duties under the Corporations Act.”

Mr Whitlam said that despite his intention to appeal, his reputation has already been shattered. “I know that the damage already done to my reputation and business standing by these proceedings is irreparable.”