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The corporate regulator has taken enforcement action against four company directors and 58 individuals for contraventions relating to company collapses.
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ASIC continues crackdown on dodgy directors
03 February 2025
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7 minute read
ASIC has said it is continuing to take firm action against directors who fail to meet their statutory obligations in its update for Q2 FY25 update.
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During the period from 1 October to 31 December 2024, ASIC disqualified four company directors. Of the four, two were disqualified for the maximum period of five years – one for misleading statements, and another for making false statements.
Additionally, the corporate regulator also took action against 58 individuals for 107 offences of failing to assist registered liquidators following the collapse of their companies.
ASIC said the failure of these directors to meet their statutory obligations had adversely impacted many small business creditors across a range of industries.
“Small businesses employ approximately half of the private sector workforce and contribute more than $500 million to the Australian economy each year. They are essential for Australia’s prosperity,” ASIC said.
Criminal prosecutions and administrative actions were also taken against directors for failing to maintain proper books and records, failing to lodge tax returns, failing to ensure companies had paid statutory debts, insolvent trading, failing to assist liquidators and lodging false and misleading documents with ASIC.
ASIC said small business owners can take practical steps to protect their interests such as maintaining financial records to track the health of their business, keeping up to date about their company’s financial position and performance and ensuring their company can pay its debts on time.
In 2024, ASIC disqualified both Constandinos Ganatzos and Mary Makeny for the maximum period of five years, as well as Allan Caratti for four years.
The regulator also recently disqualified Ian Thomas Griggs from managing corporations for two years on 20 November 2024.
Griggs was found to be involved in the failure of four companies in the hospitality industry, with the four companies owing an excess of $4 million to creditors.
Another director, Jye Dilin Menzies-Clifton, was charged with two counts of misleading statements in a document lodged with ASIC On 27 November 2024.
“ASIC alleges that while director of a company which operated a Sydney gym, Mr Menzies-Clifton submitted a form to close the company which contained declarations that the company had no outstanding liabilities, and that all the members of the company agreed to the deregistration, while knowing those statements to be false.”
The other criminal prosecution involved Benjamin Molloy, who was sentenced to a recognisance release order with a fully suspended sentence of 12 months’ imprisonment on the condition he be of good behaviour for two years.
ASIC said it would continue to take action against directors acting in a way that jeopardised the health of small Australian businesses.
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