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APRA bans HIH non-exec director

Posted On: Jun. 15, 2007 12:00 AM CST

SYDNEY, Australia¬ó The Australian Prudential Regulation Authority has disqualified Robert Stitt QC from being a director or senior manager of a general insurer.

Mr. Stitt was a non-executive director of HIH Insurance Ltd., which collapsed in 2001 becoming Australia's largest ever corporate failure.

APRA found that Mr. Stitt, who was a non-executive director of HIH and its predecessor companies from January 1992 until March 2001, also served on the company's audit and human resources committee, as well as being a director of HIH Investment Holdings Ltd., a subsidiary of HIH.

APRA said in a statement that it had "found that Mr. Stitt failed in his duty as a director by not requiring appropriate analysis by management or external consultants" before approving two purchases and a joint venture.

APRA has so far disqualified 26 individuals for their role in HIH's collapse.