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A Sydney director who failed to prevent his companies from incurring debts while insolvent and maintain his tax obligations has received a four-year ban from the corporate watchdog.
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Tax debt, inadequate books see director cop 4-year ban
10 January 2022
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ASIC has confirmed it has disqualified Jin Song Cui (also known as Jinsong Cui) of Forestville, NSW, from managing companies until 29 November 2025 for his involvement in six failed companies.
Mr Cui’s companies, of which he was a director between 2012 and 2018, have been listed as: Arise Construction Pty Ltd, Gondon HLHS Epping Pty Ltd, Gondon Five Pty Ltd, Gondon Seven Pty Ltd, Gondon Eight Pty Ltd, and Gondon Nine Pty Ltd.
“ASIC found that Mr Cui improperly used his powers as a director to gain an advantage for himself, or someone else, or cause detriment to Arise Construction and Gondon Five in allowing company funds and assets to be transferred to, or used for the benefit of himself and family members; [and] failed to prevent Arise Construction, Gondon Five and Gondon HLHS Epping from incurring debts while they were insolvent,” ASIC said.
Further, ASIC noted that Mr Cui “failed to ensure that the liabilities across the six companies could be met and that debts and taxes were paid” and “failed to exercise his powers and discharge his duties with due care and diligence in that he did not ensure that Arise Construction and Gondon Five complied with their statutory obligations to lodge tax documents”.
He also “failed to ensure that Arise Construction, Gondon HLHS Epping and Gondon Five maintained adequate books and records; failed to deliver company books and records to the liquidators of Arise Construction, Gondon Five and Gondon HLHS Epping; and failed to give the liquidator of Arise Construction and Gondon Five information about the business, property, affairs and financial circumstances of those companies,” ASIC added, noting that at the time of its decision, the six companies owed unsecured creditors $182,348,109, including $16,131,440 owed to the ATO.
“In deciding to disqualify Mr Cui, ASIC relied on supplementary reports lodged by the liquidators of Arise Construction, Gondon Five and Gondon HLHS,” ASIC said.
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“ASIC assisted the liquidators of Arise Construction, Gondon Five and Gondon HLHS to prepare supplementary reports by providing funding from the Assetless Administration Fund.”
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