Aviva Asia has launched legal proceedings against Centrepoint Alliance, with the Asian financial services company seeking almost $1 million in damages over a breach of warranty in a 2012 share sale agreement.
According to a release on the ASX this week, Centrepoint Alliance was served with a writ of summons and statement of claim on 22 January 2016, filed in the High Court of the Republic of Singapore by Aviva Asia Holdings.
In the proceedings, Aviva Asia alleges that Centrepoint's former subsidiary, Fifth Floor, breached a warranty contained in the Share Purchase Agreement.
The legal action arises from the sale of shares by Fifth Floor to Aviva Asia in Centrepoint's former Singapore-based subsidiary, Professional Advisory Holdings (PAH).
Aviva Asia alleges that there was an overstatement in the audited annual report of PAH and Professional Investment Advisory Services (PIAS) leading to a breach of warranty.
"The basis of the breach of warranty relates to an alleged overstatement of the accrued commission receivable balance in the accounts for the financial years 2009 and 2011," the ASX statement said.
Aviva Asia is seeking relief in the sum of S$988,037.09 (AU$ 988,995.87), interest and costs and any other relief that the court "deems fit".
Centrepoint Alliance says it will defend the proceedings.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all