ASIC has disqualified former food services industry director Simon Cauchi of Albury, NSW, from managing corporations for one and a half years due to his involvement in the failure of four companies.

Between September 2015 and October 2021, Mr Cauchi was the director of four companies:

• Fresh Food Wholesale Pty Ltd (ACN 633 256 112);
• Fresh Start Equity Pty Ltd (ACN 621 953 384);
• Oh! That’s Good! Food Group Pty Ltd (ACN 608 407 085); and
• Life Pack Pty Ltd (ACN 164 364 667).

Fresh Food Wholesale Pty Ltd operated in the wholesale trade industry, supplying pre-packed meals to major retail outlets. Fresh Start Equity Pty Ltd’s operations consisted of cooking and selling pre-made ready to eat meals to retailers. In July 2019, Fresh Food Wholesale Pty Ltd bought the business of Fresh Start Equity Pty Ltd.

ASIC found that Mr Cauchi acted improperly and failed to meet his obligations as director when he:

• failed to ensure Fresh Food Wholesale Pty Ltd and Fresh Start Equity Pty Ltd complied with their tax obligations;
• improperly used his position to allow Fresh Food Wholesale Pty Ltd to acquire the failing business of Fresh Start Equity Pty Ltd, which caused detriment to Fresh Food Wholesale Pty Ltd;
• improperly used his position at Fresh Start Equity Pty Ltd to transfer funds totalling $297,406.50 in repayments to Fresh Food Wholesale Pty Ltd, which caused detriment to Fresh Start Equity Pty Ltd;
• allowed Fresh Start Equity Pty Ltd to trade while insolvent.

At the time of ASIC’s decision, the four companies owed a combined total of $9,575,616 to unsecured creditors, including $529,831 owing to the Australian Taxation Office.

In disqualifying Mr Cauchi, ASIC took into account Mr Cauchi’s bankruptcy which commenced on 20 October 2021 and relied on supplementary reports lodged by the liquidators of Fresh Food Wholesale Pty Ltd and Fresh Start Equity Pty Ltd, Adam Shepard of Setter Shepard and Steven Staatz of Vincents. ASIC assisted Mr Shepard and Mr Staatz to prepare their reports by providing funding from the Assetless Administration Fund.

Mr Cauchi is disqualified from managing corporations until 8 May 2025.

Mr Cauchi has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.

Background

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.