EXCERPTS
ABC Learning founder Eddy Groves has pleaded not guilty to breaching directors' duties when he headed the $3.5 billion childcare group.
Mr Groves and fellow executive Martin Kemp appeared in the Brisbane Magistrates Court today facing the first criminal charges stemming from the failure of the childcare giant.
The men were charged with breaches of directors' duties, with Mr Groves facing one charge and Mr Kemp facing three.
Barrister Peter Davis, SC, for Mr Groves, said his client "vehemently" denied the charge and wished to enter a not guilty plea.
Mr Kemp did not enter a plea.
Alan MacSporran, SC, for the Commonwealth Director of Public Prosecutions, said Mr Kemp had emailed Mr Groves seeking approval to pay a deposit.
The proposal was for Mr Kemp's company to sell three childcare centres to ABC Learning.
The deal was worth about $3 million, the court was told. Mr MacSporran said Mr Groves emailed back approval for the transaction.
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Mr Groves and Mr Kemp were granted bail with conditions, including travel restrictions. They will not be required to attend the next court mention.
- reprinted from the Sydney Morning Herald