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The corporate regulator has disqualified four directors in three different states as it continues in its efforts to combat illegal phoenix activity.
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Directors disqualified over phoenix activity
04 June 2020
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10 minute read
ASIC has moved to disqualify four directors across Australia following investigations into separate cases of alleged illegal phoenixing.
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New South Wales
ASIC has barred West Gosford man Andrew Yiasemides from managing corporations for the next five years for his role in the failure of five companies.
Mr Yiasemides was the director of Bon Bon Strand, Bon Bon Investments, Limar International, Bon Fleur Australia and Danhold, which were involved in the manufacture of confectionary products.
The companies were found to owe creditors more than $6.4 million when they collapsed.
ASIC said Mr Yiasemides failed to exercise his powers and discharge his duties as a director, maintain proper company records and ensure taxation lodgements and obligations were fulfilled.
He was also found to have failed to provide requested information to the liquidator and to have improperly used his position for personal benefit to the detriment of the companies.
Mr Yiasemides misused the corporate form when he transferred the business to another company and left insufficient assets to pay creditors, ASIC said.
ASIC relied on supplementary reports lodged by the liquidator of Bon Bon Strand, Bon Bon Investments and Limar International in making the order to disqualify.
The disqualification will run until 28 May 2025.
South Australia
Brothers Con Demetriou and John Andrew Demetriou have both been disqualified from managing companies for four years each.
Mr John Demetriou was a director of Commercial Cleaning Edge, CAD Cleaning and Enhanced Training Services.
Mr Con Demetriou was also a director of the aforementioned companies, with the addition of Santos Cleaning.
The companies collectively owed unsecured creditors more than $2.1 million.
ASIC found Mr Con Demetriou failed to comply with obligations to lodge tax documents with the ATO for Santos Cleaning and CAD Cleaning, while also allowing Santos Cleaning to trade while insolvent.
He was also found to have allowed Santos Cleaning to transfer over $1 million to a related entity, causing the company to collapse.
Mr John Demetriou was found to have failed to comply with lodging tax documents with the ATO for Commercial Cleaning Edge and CAD Cleaning, and allowing the two to trade while insolvent.
ASIC also said he failed to assist the liquidator of CAD Cleaning by not providing requested information.
Both were found to have breached their obligation to discharge their duties as directors with a degree of care and diligence.
ASIC relied on reports lodged by the liquidators of Santos Cleaning, Commercial Edge Cleaning and CAD Cleaning in making the decision to disqualify the brothers.
Mr Con Demetriou’s ban is set to run until 2 April 2024, while Mr John Demetriou will only be banned until 4 December 2023.
Queensland
ASIC has banned Nathan Barnwell, of Murarrie, from managing companies for four years for his role in the failure of two companies.
The companies, Appafy Interactive and Fiji Recreation Aqua-Sport Exploration Society, owed creditors approximately $1.55 million when they collapsed.
ASIC said Mr Barnwell failed to exercise his duties as a director with due care and diligence, which included a failure to lodge documents and pay taxes to the ATO.
Mr Barnwell was also found to have allowed a company to trade while insolvent and to have failed to assist the liquidator by providing the requested information.
ASIC said he transferred the business of a company to a related company “for no consideration” prior to the appointment of a liquidator.
ASIC relied on supplementary reports lodged by the liquidators of both companies in disqualifying Mr Barnwell.
He is disqualified until 2 April 2024.
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