AWB's shareholders will launch a class action against the wheat exporter to recoup losses incurred when the share price plummeted.
Law firm Maurice Blackburn Cashman says the findings from the Cole inquiry have strengthened their claim that AWB deceived its shareholders by denying any knowledge of the kickbacks scheme.
AWB's share price has halved since January as a result of the oil-for-food scandal and the drought.
Principal lawyer Ben Slade says he will file a class action in the New South Wales Supreme Court soon on behalf of shareholders who lost money as a result of AWB's behaviour.
"It's very difficult to tell in numbers because the people who are coming to us and talking to us are both custodians and retail investors," he said.
"My guess is that by the time we file we'll be seeking damages upwards of $60 million, but I really can't say at this stage."
Canberra University's Professor of Corporate Governance, Stephen Bartos, says AWB's structure is partly to blame for its lack of corporate ethics.
Commissioner Terence Cole says in his report the board and management of AWB must destroy the culture of dominance and self-importance to create an ethical corporate culture.
Professor Bartos says the Federal Government has to share in blame for creating AWB's company structure.
"It was a fairly political type of privatisation and it's left us with confused accountabilities in terms of class A and class B shareholders, strong dominance of the AWB board by wheat growers and arguably too little independence in amongst that board," he said.
But the NSW Farmers Association says wheat growers still have confidence in AWB despite the Cole inquiry findings.
However, the association's grain growers committee chairman, John Ridley, concedes the company requires tougher regulation.
"We certainly call for more accountability, transparency and better corporate governance within that company," he said.
"The growers have every confidence in AWB. They've been doing this in excess of 50 years."
Dave R.
AWB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
