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A Sydney director, whose seven companies owed the ATO at least $1.3 million, has now been banned by the corporate regulator from managing companies for five years.
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7 company failures and $1.3m in tax debts see director banned for maximum period
09 September 2019
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9 minute read
ASIC has disqualified Elaine Ayoub, of Granville, New South Wales, from managing companies for a period of five years for failing to participate in the management of her seven companies.
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Ms Ayoub was a director of seven companies that failed while owing the ATO at least $1.3 million. All seven companies failed within the last seven years.
The seven companies were The Farm Wholefoods Potts Point Pty Ltd; Sumbar Pty Ltd; XXX Consulting Pty Ltd; TFW Enterprise Pty Ltd; ACN 609 906 158 Pty Ltd; ACN 127 109 326 Pty Ltd; and ACN 109 708 492 Pty Ltd.
The Farm Wholefoods Potts Point Pty Ltd also failed owing employee entitlements.
In making its decision, ASIC found that Ms Ayoub had failed to ensure that three of the companies complied with their obligation to lodge documents such as BAS and income tax returns with the ATO, and allowed two of the companies to trade while insolvent and incur debts totalling at least $150,000.
She had also failed to ensure two of the companies maintained adequate financial records; failed to assist liquidators of three companies after their appointments by providing a Report on Company Activities and Property, formerly known as a Report as to affairs, books and records; and failed to understand and discharge her duties as a director.
The corporate regulator considers her most serious failure to be that she failed to participate in the management of the companies at all.
In making its decision to disqualify Ms Ayoub, ASIC relied on supplementary reports lodged by the liquidators of The Farm Wholefoods Potts Point Pty Ltd and Sumbar Pty Ltd, namely Andre Lakomy and Jason Tang of Cor Cordis and Steven Gladman of Hall Chadwick, respectively.
Liquidators of The Farm Wholefoods Potts Point Pty Ltd were assisted by ASIC in preparing their supplementary report by providing funding from the Assetless Administration Fund.
The total amount of debts owed by the companies to creditors was in excess of $2 million.
Ms Ayoub’s disqualification extends until 24 August 2024.
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