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Tuesday 19 December 2017

17-448MR Former director sentenced for director duties breaches

Mr James Meaden, of Invermay, Victoria has been convicted and sentenced after pleading guilty to dishonestly using his position as a director of a company.

Mr Meaden, the former and sole director of Brimarco Pty Ltd (the Company) operated a business specialising in the manufacturing of trailers in Ballarat, Victoria.

An ASIC investigation found that Mr Meaden engaged in illegal phoenix activity by causing $34,800 to be transferred from the Company to a related company called Tough As Pty Ltd, of which he was also the sole director. The transfer occurred one day prior to a court hearing to wind up the Company.  After the transfer, the Company had no funds to pay employees' wages and other entitlements.  The Company also had numerous creditors who were collectively owed more than $2 million.

The Company was placed in liquidation on 17 April 2015.

Mr Meaden appeared in the Ballarat Magistrates Court on 12 December 2017. He was convicted and fined $5,000.

As a result of his conviction on a dishonesty offence, Mr Meaden is automatically disqualified from managing corporations for five years from 12 December 2017.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions

Background

Mr Meaden was convicted of s.184 of the Corporations Act, which is a dishonesty offence.

ASIC commenced an investigation after receiving a report from the liquidator of the Company, Mr Mark Roufiel, which was prepared with funding from  the Assetless Administration Fund.

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Last updated: 19/12/2017 12:00