The proposed guidance sets out the key principles that ASIC considers directors need to take into account in performing their duty to prevent insolvent trading. Continue reading
Tag Archives: insolvent trading
Former director committed to stand trial on ASIC insolvent trading charges
The former director of International Consulting Group Pty Ltd (ICG), Dr Anula Daui Kumari Kauye, has been committed to stand trial on charges brought by ASIC. Continue reading
ABC Learning traded while insolvent
CHILDCARE giant ABC Learning Centres traded while insolvent for at least five months in 2008, its administrators have determined in preliminary findings. Continue reading
ASIC disqualifies director of 11 failed companies from managing corporations
ASIC has disqualified property developer Mr Lionel Russell Sonntag, 57, of Killara New South Wales, from managing corporations for a period of four years. Continue reading
Brief example of advice given on the Insolvency advice line
Recently the 24 hour insolvency advice line provided assistance to a young lady who lost her restaurant business. Continue reading
Former Melbourne director in court on ASIC insolvent trading charges
Former director of International Consulting Group Pty Ltd (ICG), Dr Anula Daui Kumari Kauye, has today appeared in the Melbourne Magistrates’ Court on charges brought by ASIC.
Dr Kauye, 57, of Toorak, faces 64 counts of trading while insolvent under the Corporations Act, 18 counts of theft under the Victorian Crimes Act, and one count of providing false information in an affidavit to the Victorian Supreme Court.
The charges arise from Dr Kauye’s conduct while a director of ICG where it is alleged the company continued to trade while insolvent between 25 July 2003 and 1 October 2004. ASIC specifically alleges that Dr Kauye ran up debts to contractors and retail and service providers and stole approximately $1.5 million from US based companies.
A committal mention date was set for 1 July 2009 in the Melbourne Magistrates’ Court.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Insolvent Trading outcome for Gold Coast Boat builder
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ASIC media release 16-9-08 and comments
Former Gold Coast boat builder, Mr Marcel Shears, has been resentenced in the Southport District Court to four months imprisonment after failing to complete 200 hours community service imposed in July 2007. He will serve six weeks.
On 12 July 2007, Mr Shears, 37, was sentenced to 12 months imprisonment and immediately released upon entering a five-year good behaviour bond after pleading guilty to five charges of insolvent trading laid by ASIC. The Court also ordered he pay restitution and complete 200 hours community service within 12 months.
Background
In January 2005, Mr Shears was charged with five counts of insolvent trading amounting to $17,000. At the time of the alleged offence, Mr Shears was a director of Cabriolet Royale Pty Ltd which specialised in the business of building luxury pleasure boats for the United States market.
In August 2003, Cabriolet Royale was placed into liquidation following action taken by a US customer enforcing a judgment debt. ASIC alleged Mr Shears continued to build boats under the name ëCabrioletÃ, and dishonestly allowed the company to incur debts while insolvent.
This highlights the fact that ASIC is active in pursuit of directors that fail in their duties and engage in insolvent trading and phoenix type activity.
While the temptation is there for director in a difficult spot to behave improperly, often they do so because they do not understand the very serious ramification of their actions.
In this regard, Liquidation Direct are expert liquidators and specialists in insolvency law. With over 50 years combined experience, we are able to assist you in making the right decisions in difficult times. Liquidation Direct has a genuine 24 hour advice line which allows you to speak with an insolvency expert when it matters most – right now.
Call 1300 767 525 for free and confidential insolvency advice – 24 hours – everyday.
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