3 failures cops 2.5 years

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