ASIC continues to take enforcement action against company directors whose actions unfairly impact small businesses with the disqualification of seven directors in the 1 April to 30 June 2024 quarter.

Some of the directors who received the maximum allowable disqualification of five years had also engaged in illegal phoenix activity and used company funds to make payments to related parties for no commercial reason. The failure of company directors to pay the ATO, employee entitlements or other creditors puts them at an unfair competitive advantage over other small proprietary companies.

These actions are part of ASIC’s enforcement priorities which aim to protect small business through action to halt harmful conduct. ASIC continues to target misconduct related to company failures and persons that engage in illegal phoenix activity that result in outstanding debts which can be harmful to other small businesses.

ASIC is dedicated to engaging with and providing proactive support for small business owners and will continue to act against individual directors to protect the wider public, employees and other businesses against the future mismanagement of companies.

The following directors were banned from managing corporations following their roles in the collapse of multiple small proprietary companies leaving many creditors unpaid including other small business creditors, employees, and the Australian Taxation Office (ATO):

Meral Altinarda

Former accommodation and food services industry director Meral Altinarda, of Keysborough, VIC, was disqualified from managing corporations for four years due to her involvement in the failure of four companies. The four companies owed a combined total of $2,199,755 to creditors, including $1,737,247 owing to the ATO. ASIC disqualified Ms Altinarda until 10 April 2028.

Julian Joesph Bignold

Former food services industry director Julian Joseph Bignold of Turramurra, NSW, was disqualified from managing corporations for three and a half years due to his involvement in the failure of two companies. The two companies owed a combined total of $12,411,959 to unsecured creditors, including $529,561 owing to the ATO. ASIC disqualified Mr Bignold until 11 October 2027.

Miroslav Jack Samardzij

ASIC previously issued a media release regarding the disqualification of former building and construction industry director Miroslav Jack Samardzija, from managing corporations for the maximum period of five years due to his involvement in the failure of three small proprietary companies, which owed a combined total of $2,344,867 to unsecured creditors, including approximately $1,031,522 to the ATO:24-078MR ASIC disqualifies QLD construction director for 5 years. ASIC disqualified Mr Samardzija until 15 April 2029.

Laurence Pereira

ASIC previously issued a media release regarding the disqualification of former electrical, refrigeration, air-conditioning, and mechanical services industries director Laurence Christopher Pereira, from managing corporations for the maximum period of five years due to his involvement in the failure of four small proprietary companies, which owed a combined total of $4,006,382 to unsecured creditors including $1,031,357 for unpaid wages, superannuation, and employee entitlements: 24-105MR ASIC disqualifies QLD director for maximum five years. ASIC disqualified Mr Pereira until 1 May 2029.

Peter Gribble

Property development and financial services industry director Peter Gribble of Turramurra NSW was disqualified from managing corporations for two and half years, until 23 November 2026, due to his involvement in four small proprietary companies which owed a combined total of $9,463,640 to 24 unsecured creditors. Many of the affected creditors were small businesses in the construction industry. Peter Gribble was previously disqualified by ASIC in October 2022 from controlling financial services businesses for three years: 22-274MR ASIC bans Sydney-based director for three years over refusal or failure to pay AFCA determinations.

Andrew Liam Parry

ASIC previously issued a media release regarding the disqualification of former solar, media, telecommunications, and bitcoin mining director Andrew Liam Parry, from managing corporations for the maximum period of five years due to his involvement in the failure of four small proprietary companies, which owed a combined total of $11,085,390 to creditors: 24-114MR ASIC disqualifies NSW director for five years. ASIC disqualified Mr Parry until 24 May 2029.

Christian Oey

ASIC previously issued a media release regarding the disqualification of former financial and insurance services industry director, Christian Oey, from managing corporations for the maximum period of five years due to his involvement in the failure of two companies, which owed a combined total of $5,850,309 to creditors: 24-035MR ASIC disqualifies NSW director for maximum five years after failure of seven companies. ASIC disqualified Mr Oey until 6 June 2029.

Assetless Administration Fund

In disqualifying these directors, ASIC relied on supplementary reports lodged by the following and other liquidators after ASIC approved funding from the Assetless Administration Fund:

• Nicholas Giasoumi and Adrian John Warry of Dye & Co Solvency & Turnaround were appointed liquidators of Meral Altinarda’s companies Golden Entertainment Pty Ltd and Crew Entertainment Pty Ltd
• Adam Shepard of Setter Shepard was the appointed liquidator of one of Mr Bignold’s companies with Steven Neville Staatz of Vincents Chartered Accountants the liquidator for the second company belonging to Mr Bignold
• Jason Porter of SV Partners is the liquidator for one of Mr Gribble’s companies, with Stephen Hathway of HELM Advisory the liquidator for another company belonging to Mr Gribble.

Background

Section 206F of the Corporations Act 2001 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.

In deciding whether a director should be banned from managing corporations, ASIC relies on information provided by registered liquidators in initial statutory reports and supplementary reports and on convictions resulting from ASIC’s request assistance for external administration (RAEA) program. The RAEA enables registered liquidators to request assistance from ASIC in circumstances when directors, officers and individuals related to a company in external administration fail to comply their legal obligation to assist liquidators.

Following a director ban, the disqualified director might be affected by:

• Reputational damage. The director ban information is available through ASIC’s public register and can impact on a director’s reputation
• An inability to work as a director without permission of ASIC or the court
• Difficulty obtaining finance or credit rating issues
• Possible criminal sanctions if the disqualification order is not complied with
• Possible related liquidator claims against the disqualified director.

Directors can seek a review of ASIC’s decision by the Administrative Appeals Tribunal. To date, ASIC has not been advised that any of the above directors are reviewing their banning order.

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.

Orders about Creditor-Defeating Dispositions

A creditor-defeating disposition is a disposal of company property that prevents, hinders, or significantly delays that property from becoming available for the benefit of creditors in the winding up of the company.

A liquidator may seek to recover a voidable creditor-defeating disposition and ASIC or a court may undo this disposition if it is considered a 'voidable transaction' under the Corporations Act.

In the period 1 April to 30 June 2024, ASIC issued the following orders:

Glenn James Turner

On 19 April 2024, after an application by the liquidator of Widebay Fitouts Pty Ltd (In liquidation) ACN 620 385 506, ASIC made an order directing former director Glenn James Turner, to transfer property of the company that was subject of a creditor-defeating disposition, to the liquidator.

Glenn Wright

On 31 May 2024, after an application by the liquidator of Wright Engineering Pty Ltd (in liquidation) ACN 080 960 274, ASIC made an order directing former director Glenn Wright, to transfer property of the company that was subject of a creditor-defeating disposition, to the liquidator.

Director ID

All directors are required by law to verify their identity with Australian Business Registry Services before receiving a director ID. Directors must apply for their director ID within the following timeframes:

• Directors appointed before 1 November 2021 had until 30 November 2022 to apply
• New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days form their appointment to apply
• From 5 April 2022, intending new directors must apply before being appointed.

In the period 1 April to 30 June 2024, ASIC prosecuted the following people for failure to have a director ID:

Alexander Henry and Luke David Mason

ASIC previously issued a media release regarding the conviction on 3 May 2024, of Alexander Henry of Rockingham WA and Luke David Mason of Wilson WA, for failing to comply with director identification requirements: 24-096MR Western Australian directors convicted for failing to have director identification numbers.

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