ASIC has disqualified pharmacy wholesaler director Jenny Huang, of Robina, QLD, from managing corporations for four years due to her involvement in the failure of two companies.
Between January 2009 and October 2022, Ms Huang was a co-director of two companies:
- Tasman Pacific Holding Pty Ltd (Tasman Pacific) (ACN 134 816 452); and
- Palicon Pty Ltd (Palicon) (ACN 099 070 498).
ASIC found that Ms Huang acted improperly and failed to meet her obligations as director when she:
- failed to pay debts and taxes owed to the Australian Taxation Office (ATO) for both companies;
- failed to lodge statutory returns with the ATO for Tasman Pacific;
- failed to maintain adequate books and records for both companies;
- failed to prevent Tasman Pacific from trading while insolvent;
- engaged in illegal phoenix activity by selling the assets of Tasman Pacific prior to liquidation to a newly created related entity for less than market value; and
- improperly used her position by allowing Tasman Pacific to pay monies to her co-director, who is her husband, for purported reimbursement of credit card expenses and loan repayments in preference to other creditors and at a time when the company appeared to be insolvent.
At the time of ASIC’s decision, the two companies failed owing a combined total of $4,366,335 to creditors, including $401,531 owing to the ATO.
In disqualifying Ms Huang, ASIC relied on supplementary reports lodged by Tasman Pacific’s liquidator, Paul Weston of DW Advisory and Palicon’s liquidator, Christopher Darin of Worrells. ASIC assisted Mr Weston and Mr Darin to prepare their reports by providing funding from the Assetless Administration Fund.
Ms Huang is disqualified from managing corporations until 25 October 2026.
Ms Huang has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for a maximum period of five years if, within a seven year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about each of the company’s inability to pay its debts.
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.
More information about ASIC’s work in combatting illegal phoenix activity can be found here.
ASIC is a member of the Phoenix Taskforce, which comprises federal, state and territory government agencies who collaborate to combat illegal phoenix activity. The aim of the Phoenix Taskforce is to provide a whole-of-government approach to identify, disrupt and prosecute those who engage in or facilitate illegal phoenix activity.