It disqualifies three and prosecutes 68 for failing to assist liquidators
The Australian Securities and Investments Commission (ASIC) has taken action against company directors who fail to properly manage their businesses or assist liquidators after company collapses.
Between July 1 and Sept. 30, ASIC prosecuted 68 individuals for failing to assist liquidators and disqualified three company directors.
Among those disqualified were Richard Sparreboom and Graeme Doble, who each received the maximum five-year disqualification. Victorian director Benjamin Anderson was disqualified for four years after being linked to the failure of seven companies, collectively owing over $35 million.
The corporate regulator found that Anderson had allowed one of his companies, Australian Public Custodian, to trade while insolvent and had failed to maintain proper financial records and comply with statutory obligations.
ASIC’s actions stemmed from the directors’ involvement in tax avoidance, failure to pay employee entitlements such as wages and superannuation, insolvent trading, and illegal phoenix activity. The misconduct impacted small business creditors across industries including construction, property development, and transport, leaving many unpaid.
Criminal prosecutions also progressed during this period. In July, NSW director Mark Stevens was charged with dishonestly diverting $110,000 from his company, MWCLMS, to another entity. In September, a trial commenced for NSW director Tim Xenos, former CEO of FAL Healthy Beverages, who was accused of misusing company funds and managing a company while disqualified.
ASIC’s enforcement activities were supported by the Commonwealth Director of Public Prosecutions and relied on reports from liquidators funded through the Assetless Administration Fund.
The agency urged directors to seek professional advice if uncertain about their legal obligations or a company’s financial health, highlighting the importance of compliance to protect creditors, employees, and the broader economy.
Directors who fail to meet their statutory obligations can face disqualification for up to five years and may be listed on ASIC’s public register of banned individuals. Criminal charges may also be pursued for violations of disqualification orders.
ASIC’s efforts during the quarter resulted in over $315,000 in fines from prosecutions, providing further support for liquidators seeking to recover assets and report to creditors.
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