Director Breaches Duty -ASIC Investigation

On 16 May 2022, CZ (‘the Director’) was convicted of dishonestly breaching his directors’ duties.  He had earlier pleaded guilty to breaching his directors’ duties by using his position as a director to gain an advantage for himself.

The Director placed R.C.G. Pty Ltd (A.C.N. 008 781 539) into liquidation without disclosing to the liquidator particulars of a pre-existing lease, which had been entered into with an unrelated third party tenant, for use of land owned by RCG.

After RCG was liquidated, the Director continued to invoice and collect rental income payable under the terms of the lease, without disclosing his conduct to the company’s liquidator.  A total of $2,338.60 in undisclosed rent was collected. 

The Director was convicted and fined $2,000 and as a result of that conviction, he has automatically been disqualified from managing corporations for five years until 21 March 2027.

The Director was charged on 6 November 2021, following an ASIC investigation (refer: 21-304MR). He pleaded guilty in the Southport Magistrates Court on 21 March 2022.

A director is required to disclose all of the assets and liabilities of the company to an appointed liquidator, and not use their position for their own benefit and to the detriment of the company.

See the original media release here