The first former executive of Philip Services Corp. has settled with the Ontario Securities Commission, agreeing to pay costs of $50,000 and testify against other executives.

In a settlement agreement released yesterday, Colin Soule, who was Philip’s general counsel, admitted he failed to ensure key information was disclosed in a proxy circular for a new share issue in late 1997.

The issue was completed just weeks before Philip began a series of disclosures that ultimately saw its share price collapse and the company file for bankruptcy protection.

Soule is prohibited from being a director or officer of a public company for three years.

He will also testify as an OSC witness in the case against other former Philip executives, including former CEO Allen Fracassi and former metals group president Robert Waxman.

The OSC said the proxy failed to reveal that Waxman had been relieved of his duties in September 1997, after admitting to making a personal benefit from some transactions he instituted.