THE NEWS WRAP: Directors warned following Centro ruling

Australian business directors have been warned they will have to ask tough questions of company procedures after a Federal Court ruling against eight Centro directors.

The court action, brought by corporate regulator ASIC, found the directors failed in their duties in 2007 when approving financial statements that omitted billions of dollars of short-term debt.

ASIC said the decision will “empower” directors to manage their companies thoroughly.

Reinhart launches Rio Tinto case

Gina Reinhart, Australia’s richest person, has teamed up with fellow mining magnate Angela Bennett to sue Rio Tinto.

The duo, estimated to be worth a combined $12.4 billion, is taking on the mining giant for rights to iron ore under 150 square kilometres of the Pilbara. The two are claiming $136 million in royalties, stretching back 20 years. 

Facebook sells 225,000 shares to VC group

Facebook has sold $6.6 million of its shares as it prepares for an expected initial public offering next year.

The social networking site sold 225,000 shares to investment fund GSV, valuing each share at an average of $29.28. Facebook was recently valued at $50 billion, although the IPO is anticipated by some observers to push the valuation above $100 billion. 

Overnight

The Dow Jones Industrial Average was up 108.98 points to 12,043.56. The Australian dollar dropped to 104.12 US cents.