Disqualified director convicted and sentenced

Mr Keith Avenel Smith of Officer, Victoria, has been sentenced in the Ringwood Magistrates’ Court after pleading guilty to charges brought by ASIC and the Insolvency Trustee Service Australia (ITSA).
Mr Smith was charged with managing a corporation while disqualified under the Corporations Act 2001 and making a false declaration on a Statement of Affairs under the Bankruptcy Act 1966.

He was convicted and sentenced on 3 June 2010 to four months imprisonment which he will serve by way of intensive correction in the community.

Mr Smith’s conviction follows an ASIC investigation which found that he engaged in various acts of company management in relation to Colonial Holdings (Australia) Pty Ltd (Colonial Holdings) between 2 February 2004 and 2 May 2007. This investigation revealed that Mr Smith controlled the operation of Colonial Holdings (Australia) Pty Ltd by operating company accounts and signing caveats over land on behalf of the company while he was an undischarged bankrupt (under the Bankruptcy Act 1966, individuals are automatically disqualified from managing corporations).