Sharon Peart of Greenway, ACT, has been disqualified from managing corporations for three years and nine months after her involvement in three failed companies.

Ms Peart was a director of three companies between 2010 and 2020:

• That Bagel Place Pty Ltd (ACN 152 449 646);
• Cafe Society (Canberra) Pty Ltd (ACN 608 825 056); and
• The Bakery Canberra Pty Ltd (ACN 626 702 743).

The three companies provided retail food and beverages.

In making its decision, ASIC found that Ms Peart failed to:

• prevent Cafe Society from trading whilst insolvent;
• ensure Cafe Society and The Bakery Canberra kept proper books and records;
• deliver the books and records of Cafe Society to the liquidator and provide a report of affairs of that company to the liquidator;
• ensure timely reporting and payment to the ATO for each of the three companies and in relation to Café Society, report and pay the superannuation guarantee charge.

The total amount owed to unsecured creditors is $2,178,365.50, including $769,334.91 owed to ATO.

In deciding to disqualify Ms Peart, ASIC relied upon supplementary reports lodged by Cafe Society’s liquidator, Jonathon Colbran of RSM Australia, The Bakery Canberra’s liquidator, Anthony Lane of Vincents Chartered Accountants, and That Bagel Place’s liquidator, Michael Slaven of Torline Slaven. ASIC assisted the liquidators of Cafe Society and The Bakery Canberra to prepare a supplementary report by providing funding from the Assestless Administration Fund.

Ms Peart is disqualified from managing corporations until 10 August 2025.

Background

Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for up to five years if, within a seven year period, the person was an officer of two or more companies that were wound up and the liquidators lodge reports with ASIC about each company’s inability to pay its debts or alleging misconduct.

ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:

• Involvement in the management of a corporation;
• Auditing self-managed superannuation funds (SMSFs); or
• Practising in the financial services or credit industry.