Nearly $4m in personal liability for 2 former directors

“The indicia of insolvency relevant for present purposes are overdue Commonwealth and State taxes, unpaid rental liabilities, liquidity ratios below one, insufficient cash and current assets, an increase in aged payables over 90 days, default judgments, special arrangements with selected creditors and trading losses,” Associate Justice Gobbo found.

These liabilities included unsecured debts totalling $2,115,967.00 owed to 12 creditors and employees.

Munday was the sole director and sole shareholder of Perrydotcom from 4 June 2014 to 1 August 2015.

Mathieson is Munday’s brother-in-law and was made director of Perrydotcom and sole shareholder from 1 August 2015.

“It was patently clear that, despite his removal as a director from the ASIC register for Perrydotcom effective 2 August 2015, Mr Munday continued to represent he was a director of Perrydotcom and to perform functions in the affairs of the company which, given the extent and significance of those functions, are in all the circumstances properly to be regarded as functions of a director of the company,” Associate Justice Gobbo said.

Following his removal as director, Associate Justice Gobbo found that Munday continued to engage in functions of a director, such as communicating with solicitors in respect of the acquisition of a business by Perrydotcom, providing a personal guarantee for the purchase on behalf of the company, and executing an employment contract on behalf of the company.

Further, the court found that Munday negotiated a payment plan with the ATO on or around 24 March 2020 in respect of a BAS debt of $712,899.00.

Associate Justice Gobbo found that Munday acted in the position of Perrydotcom’s director until its winding up on 18 October 2023, despite his removal in mid-2015.

“The unchallenged evidence demonstrates that Mr Munday was still actively involved with Perrydotcom until its liquidation in October 2023,” the judge said.

While Munday filed a witness outline in defence of his assertion that the company was not insolvent, he declined to be sworn, so the judge gave no weight to his submissions.

“I accept that the Liquidator holds the necessary expertise to determine solvency and that he has approached the task by identifying the indicia of insolvency in a manner consistent with the authorities,” the court said.

Further, the court found that Perrydot ledgers to Munday and Garrick revealed payable debts of $804,342.00 and $780,582.00, respectively.

Upon consideration of all evidence, Associate Justice Gobbo determined that Munday contravened the Corporations Act by failing to prevent Perrydotcom from insolvent trading, ordering him to pay the liquidator $2,115,967.00 in compensation for loss or damage incurred from insolvent trading, and pay $804,342.00 for payable debts, and that Garrick pay the company $780,582.00 for payable debts.

The case citation: Re Perrydotcom Pty Ltd (in liq) [2026] VSC 504 (7 August 2026)