Firepower founder Tim Johnston banned from managing companies for 20 years

FIREPOWER boss Tim Johnston has been banned from managing companies for 20 years over his role in the collapse of the fuel pill company.

Tim Johnston

FIREPOWER boss Tim Johnston has been banned from managing companies for 20 years over his role in the collapse of the fuel pill company.

In a judgment handed down today in Perth, Federal Court judge John Gilmour sided with the corporate regulator and ruled its submission for a 20-year ban was appropriate.

"I am satisfied that the period of disqualification sought by the Australian Securities and Investments Commission in all the circumstances is reasonable,'' Justice Gilmour said in his judgement.

"I would disqualify Mr Johnston from managing corporations for a period of 20 years"

He said Mr Johnston knowingly disregarded the need to meet disclosure requirements under the law, though there was no evidence of actual dishonesty.

"Mr Johnston should be excluded for a very long period of time from having access to or control over shareholders investments and the interests of creditors within a corporate structure," Justice Gilmour said.

Mr Johnston was also ordered to pay ASIC's costs.

Justice Gilmour also banned former financial advisor Quentin Ward from managing a company for six years. Mr Ward was the sole director of another company, Axis International.

ASIC Chairman Greg Medcraft welcomed the court's decision and said it highlighted the importance of investors having enough information to make an informed decision about a company.

"Where this does not occur as a result of the failings of gatekeepers like directors and advisers, then ASIC will not hesitate to act," Mr Medcraft said.

ASIC's application for the disqualification order was heard in court last month. It followed proceedings the regulator brought against a number of companies associated with Firepower.

Mr Johnston's ban is not the longest ever recorded, with directors in the past being slapped with life time bans by a court.

Handing down the judgment against Mr Ward on Thursday, Justice Gilmour said while the need for personal deterrence was low, the need for general deterrence was a significant factor.

"The contraventions by Mr Ward were the result of his carelessness. There is no real question of personal enrichment,'' he said.

Justice Gilmour said the fact that Ward had made some repayments meant there was a "tangible expression of remorse'' for his actions.

"Indeed he and his associates suffered significant personal loss to the extent of their investment in Firepower BVI shares,'' he said.

"I do not consider that it has been demonstrated that Mr Ward has a predisposition to this kind of conduct or that there is any real likelihood that such conduct will be repeated.''

Justice Gilmour said the 15-year ban sought by ASIC was "excessive and unwarranted'' and deemed six years to be more appropriate for the 62-year-old.

In his judgment on Johnston, Justice Gilmour said the contraventions were much more serious.