A Victorian director has been disqualified from managing corporations for a period of 2 years and 6 months – he was involved in 3 failed companies that went into liquidation between 2015 and 2019. The offence – a breach of Corporations Act s260F – read GM Advisory’s explanation of that offence here.
Two were involved in the manufacturing and selling of bathroom and/or plumbing goods and the third was involved in manufacturing and the modification of vehicles.
ASIC’s investigation found that the director:
- Failed to take reasonable steps to inform himself about, monitor and oversee the companies’ financial affairs;
- Disregarded taxation obligations;
- Breached his duty to act with due care and diligence and his record keeping obligations; and
- Showed a persistent inability or unwillingness to comply with his obligations as a director.
Creditors across all three companies was approximately $1,659,497.89, including $951,653.80 owed to the ATO.
ASIC relied on the liquidators of the Companies for reports and ASIC also assisted one of the liquidator’s to prepare a report by providing funding from the Assetless Administration Fund.
For further details on this case ASIC Media Release