iscover ASIC disqualifies director for three failed companies owing $6.6m
RegulationVictorian man found to have lodged false documents to avoid personal liability for debt.
ASIC has disqualified a Victorian director for five years over his involvement in three failed companies that owed a combined total of more than $6.6 million.
Alfred Holmes was the director of three companies between May 1971 and February 2018, all of which were involved in the laser and water-cutting industry: Hygrade Cutting Frames Co Pty Ltd (HCF), Laser Dies Australasia Pty Ltd, and Hygrade Group Pty Ltd.
At the time of ASIC’s decision, the three companies owed a combined total of $6,650,938 to creditors, including $1,452,678 to the ATO.
In making its verdict ASIC found that Mr Holmes had:
- Lodged false documents with ASIC that appointed individuals as directors of HCF without their consent in an attempt to avoid the personal liability associated with the company’s significant superannuation and taxation debts while he continued to manage the company without being recorded as a director on the corporate register.
- Gained an advantage for himself or related entities by authorising a backdated loan agreement to make HCF liable for his own personal debt.
- Failed to take all reasonable steps to secure compliance by HCF with its obligation to keep written financial records.
- Failed to comply with HCF’s statutory obligations to lodge necessary documents and pay superannuation guarantee charge on behalf of its employees.
ASIC relied on supplementary reports lodged by HCF’s liquidator, David Vasudevan of Pitcher Partners in determining Mr Holmes’ disqualification.
Mr Holmes is disqualified from managing corporations until 25 October 2027.
Mr Holmes has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Josh Needs
Josh Needs is a journalist at Accountants Daily and SMSF Adviser, which are the leading sources of news, strategy, and educational content for professionals in the accounting and SMSF sectors.
Josh studied journalism at the University of NSW and previously wrote news, feature articles and video reviews for Unsealed 4x4, a specialist offroad motoring website. Since joining the Momentum Media Team in 2022, Josh has written for Accountants Daily and SMSF Adviser.
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