Gay to pay own way through court

FORMER Gunns boss John Gay has been made to pay his own court costs after winning the right to manage two family companies.

On Tuesday, the Supreme Court granted Mr Gay leave to sit as a director on family trust JEG Management and family company Specialty Veneers.

He is not permitted to direct them by himself.

Justice Robert Pearce yesterday knocked back Mr Gay's lawyers' application that the Australian Securities and Investment Commission foot the bill for the legal proceedings.

``Mr Gay has applied for and been granted an indulgence,'' Justice Pearce said.

Justice Pearce said the participation of ASIC in the matter was justified, and should not be deterred.

He said their actions did not extend the hearing time, cost or inconvenience of proceedings.

Mr Gay and ASIC will pay their own costs in relation to the application.

Permission to get back into business was granted to Mr Gay after he was last year found guilty of insider trading over the sale of Gunns shares in 2009, while privy to a private management report which had not yet been made public.

The share price value was slashed by 20 per cent when the information was released publicly two months later.

Commonwealth prosecutors acting for the Australian Security and Investments Commission said Mr Gay had benefited by almost $800,000.

He was fined $50,000 and barred from managing any company for five years.

The 70-year-old remains disqualified from managing any others corporations for the next five years.

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