ASIC disqualifies Sydney man from managing corporations for 5 years

The story below highlights ASIC’s powers where a person is involved in fraudulent behaviour and tax evasion.

ASIC has disqualified Mr Fong Man Ng of Hurstville, New South Wales, from managing corporations for a period of 5 years.

Mr Ng’s disqualification follows an ASIC investigation into his involvement in two failed companies, Dragon Star Seafood Restaurant Pty Ltd and Kam Fook (Chatswood) Pty Ltd.

ASIC found that Mr Ng failed breached his duties as a director of Dragon Star Seafood Restaurant Pty Ltd, by allowing the company to produce two sets of financial records for the purpose of understating income and thereby defrauding the Australian Taxation Office (ATO).

As a result of this conduct, the company incurred significant penalties and interest charges from the ATO which led to the company being placed into external administration.

 Further, ASIC found that Mr Ng allowed his brother, Mr Eddie Ng, whom ASIC had disqualified from managing corporations in July 2005, to continue to be involved the in the management of Dragon Star Seafood Restaurant Pty Ltd despite his disqualification.

Mr Ng has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.