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Bans range from two to four years for improper behaviour including phoenix activity.
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ASIC disqualifies four directors over 11 failed companies owing $20m
11 November 2022
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ASIC has banned four directors across two states with 11 failed companies and $20 million in debts between them.
Vincent Felice Orlando and David Michael Tricarico of Victoria were banned from managing corporations for three and two years respectively for their role in six failed companies.
ASIC said both men acted improperly and the companies’ debts to unsecured creditors reached $14,537,868.
The two were the directors of six companies between March 2017 and June 2021:
- Hiride Pty Ltd
- Tempy Pty Ltd
- 6 Heath Street Pty Ltd
- 30 Pearl Street Pty Ltd
- The business formerly known as Fiero Pty Ltd
- Adepto Co Pty Ltd
ASIC found that Mr Orlando and Mr Tricarico did not meet their obligations as directors when they failed to:
- Exercise their powers and discharge their duties with due care and diligence by allowing Hiride Pty Ltd to provide various loans totalling $1,775,546 to another company when there was no business purpose or benefit to Hiride Pty Ltd.
- Exercise their powers and discharge their duties with due care and diligence by allowing Tempy Pty Ltd to replace another company in a loan agreement which was not done for the benefit of Tempy Pty Ltd.
- Maintain the books and records of Hiride Pty Ltd.
Mr Orlando was also found to have failed to assist the liquidator of Hiride Pty Ltd during an examination in the Federal Court.
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ASIC also disqualified Queenslander Jenny Huang from managing corporations for four years due to her involvement in the failure of two companies.
Between January 2009 and October 2022 Ms Huang was the director of Tasman Pacific Holding Pty Ltd and Palicon Pty Ltd which failed owing $4,366,335 to creditors, including $401,531 to the ATO.
The commission found that Ms Huang had failed to meet several obligations required as director including engaging in illegal phoenix activity by selling assets for less than market value to a related entity and failing to pay debts and taxes owed to the ATO.
Fellow Queenslander William Hanron Redmond was also disqualified from managing corporations for two years by ASIC due to his involvement in the failure of three companies.
Redlaw Australia Pty Ltd, Red Lawyers Pty Ltd, and Red Capital Partners Pty Ltd owed approximately $1,850,000, including $601,028 to the ATO, when they entered liquidation.
Mr Redmond was a director of the three between October 2016 and July 2020,
During its investigation, ASIC found that Mr Redmond failed to meet his obligations as director when he caused harm to Redlaw by failing to take steps to seek the repayment of a loan to another company of which he was also the sole director, among others.
The disqualification periods from managing corporations for each director were as follows:
- Mr Orlando was disqualified until 21 October 2025
- Mr Tricarico was disqualified until 6 November 2024
- Ms Huang was disqualified until 25 October 2026
- Mr Redmond was disqualified until 18 October 2024
Each director has the right to seek a review of ASIC’s decision by the AAT.
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