Warning about deregistering your Company

Warning about deregistering your Company

A director from Victoria has been convicted of making of a false or misleading statement to ASIC, receiving a criminal conviction and a $1,500 fine for asking ASIC to deregister his Company when he had liabilities of over $200k owing to creditors.

You are better doing nothing than ticking an ASIC box requesting your company be deregistered. It is so easy to data match these days and takes nothing for the biggest creditor in Australia, the ATO to have setup alerts with ASIC. A red flag drops when a company seeking to be deregistered owes money to the ATO or anyone else for that matter who has setup an alert.

The facts in this case were fairly simple. The director of Knight & Day Eating Pty Ltd (ACN 611 316 333) operated a restaurant business.  

On 16 May 2019, a Form 6010 was lodged with ASIC to voluntarily deregister the company, declaring that the company did not have any outstanding liabilities when, at the time, the Director was aware that there was outstanding debt of $225,293.00 to Knight & Day Property Painting Pty Ltd (ACN 162 632 760) (in liquidation), a related entity.  

The director pleaded guilty on 17 August 2022 at Heidelberg Magistrates’ Court following a prosecution by the Commonwealth Director of Public Prosecutions. See the ASIC media release here.

But wait, there’s more. 

ASIC is certainly on the ball with this type of offending.  Here is another one – Byron Bay Beautician.  A textile fabricator who had $12,563.80 in liabilities in Victoria.