Major banks order investigation of Slater and Gordon’s accounts

National Australia Bank and Westpac, Slater and Gordon's leading investors, have appointed advisory firm McGrathNicol to look at the firm’s books.

Felicity Nelson • 07 January 2016 • NewLaw

As reported in The Australian, the banks appointed McGrathNicol to gain a clearer idea of the company’s financial position.

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The decision follows a dire year for the listed firm, which has weathered a falling stock price and controversy around its acquisition of UK firm Quindell’s professional services division.

The stock price fell again today by 2.6 per cent to 73 cents a share, after dropping nearly 90 per cent since April 2015, and recently prompted rival firm Maurice Blackburn to prepare a class action against the firm on behalf of shareholders.

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Slater and Gordon responded to media reports around the appointment of McGrathNicol as an independent adviser to its banking syndicate in an ASX statement released on 7 January.

“We agreed that our banking syndicate would appoint their own advisers who will work alongside those appointed by the Board,” said managing director Andrew Grech.

“The Company has continued to work collaboratively and cooperatively with the banks and our advisers.”

Mark Copeland Friday, 08 January 2016

<p>The public listing model for private law firms is NEVER going to work, as it expressly puts the pursuit of profits ahead of lawyers' fundamental obligations of trust and integrity to clients. A lawyer CANNOT have two masters - either the client comes first or the shareholders - and no amount of greedy rationalisation by S & G and other Firms can alter this inalienable fact.</p>

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