The corporate regulator has disqualified Charles Montgomery Clarke, of Glen Iris, Victoria, from managing companies for the maximum period of five years.
Mr. Clarke is a former director of five failed companies, including CMTC Pty Ltd; CCSLS Services (Vic) Pty Ltd; CC Specialized Landscape Services Pty. Ltd.; CCSLS Holdings Pty Ltd; and A.C.N. 144 899 007 Pty Ltd.
The total amount of debts owed by the five companies to creditors was approximately $3.5 million.
In making its decision, ASIC relied on reports that were lodged by liquidators of the failed companies. ASIC provided liquidators of CMTC and CCSLS Services with funding from the Assetless Administration Fund to prepare supplementary reports used to disqualify Mr Clarke.
ASIC found that Mr Clarke had failed to prevent one of the companies from trading while possibly insolvent; failed to pay tax and ensure that proper financial records were kept; and failed to exercise his duties as a director.
He was also found to have failed to comprehensively monitor company operations and financial position; and engaged in phoenix activity by transferring the business of an indebted company to a new company leaving the initial company with no assets to pay creditors.
Mr Clarke’s disqualification took effect from 7 September 2018 and extends to 6 September 2023.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.