Coal of Africa Limited confirms that it commenced proceedings in the Federal Court of Australia against former finance director Mr Blair Sergeant. The proceedings involve allegations of breaches of duties on the part of Mr Sergeant during his time with the company as both a director and employee.

As part of these proceedings CoAL has successfully obtained an order from the Federal Court of Australia to freeze AUD 6 million of Mr Sergeant's assets.

These alleged breaches of duties relate to a specific corporate transaction in which Mr Sergeant was involved in 2009 and 2010. As the proceedings are currently before the Federal Court, CoAL cannot disclose further details of these allegations at this time whilst it awaits a formal response to the Federal Court from Mr Sergeant.

Source - Coal of Africa

(www.coalguru.com)