The director of a residential building contractor in NSW placed his company into Voluntary Administration because it was insolvent or likely to become insolvent. Having ceded control to Administrators, the Director then issued invoices for work performed by the Company with instructions to pay those amounts to his personal bank account. The amount involved was $55,517 and related to offences which occurred in 2017.
In August 2021, the director pleaded guilty to dishonestly using his position as a director with the intention of directly or indirectly gaining an advantage for himself or someone else. This conduct was found to be a contravention of s184(2)(a) of the Corporations Act 2001 (Cth) and carries a maximum penalty of 2000 penalty units or imprisonment for five years, or both. The director was sentenced to a community correction order to be of good behaviour for a period of twelve months. See ASIC’s media release here.