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A Victorian director accused of engaging in illegal phoenix activity has now been disqualified from managing corporations for four years.
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Illegal phoenix activity sees Victorian director disqualified
15 January 2021
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ASIC has disqualified Hayley Joan Street of Richmond, Victoria, from managing corporations until 14 December 2024, following her involvement in two failed companies.
Ms Street was a director of Steven & Joan Pty Ltd that operated in the construction industry, and Tutti Famiglia that operated in the accommodation and food services industry, from 2010 to 2019.
Her disqualification comes after the corporate regulator found that she had engaged in illegal phoenix activity by allowing Steven & Joan to transfer its assets and business to a related entity, Federation Solid Plastering Pty Ltd, in a sale agreement that was never paid by Federation Solid.
Once the assets and business were transferred, Federation Solid continued to operate a substantially similar business to Steven & Joan.
ASIC also found that Ms Street allowed Steven & Joan to obtain loans totalling $552,000 knowing the company was in financial distress and unlikely to be in a position to repay the money, and authorising transactions from the entity’s bank account for purposes that appeared to be personal in nature.
Ms Street was also found to have failed to ensure that Steven & Joan maintained adequate books and records; failed to assist the liquidators of Steven & Joan and Tutti Famiglia; and failed to prevent Steven & Joan from incurring debts totalling approximately $618,000 when the company was most likely insolvent.
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The companies had a combined total debt exceeding $1 million owed to creditors.
In disqualifying Ms Street, ASIC relied on reports lodged by the liquidator of Steven & Joan, Brent Leigh Morgan of Rodgers Reidy, and the liquidator of Tutti Famiglia, Adam Bernard Preiner of O’Brien Palmer.
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