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One in the restaurant business and another in construction failed to meet their obligations.
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ASIC bans 2 directors with $13m in debts
26 April 2022
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ASIC has disqualified former restaurateur and director Toufic Chidiac from managing corporations for two years due to his involvement in the failure of numerous companies.
Between September 2017 and October 2019, Mr Chidiac was a director of eight companies that were wound up, each of which owned or operated restaurants at various locations in NSW and Queensland.
ASIC found that Mr Chidiac acted improperly and failed to meet his obligations as director when he failed, over an extended period, to participate in the proper management of some of his companies.
Mr Chidiac lacked care and diligence in relation to his companies’ financial affairs and failed to manage compliance with ATO lodgement obligations.
“He showed a serious lack of commercial morality after failing to pay debts owed to the ATO following the sale of the business that was operated by Pale Vino and when he agreed to become a director in name only of Sourdough Warringah to mislead a third party,” ASIC said.
At the time of ASIC’s decision, five of the companies, Sourdough (Warringah), Pane Vino, Sourdough (Miranda), Sourdough (Hornsby) and Sir Chapel Tramsheds had accrued debts of approximately $2.9 million, including $972,000 owing to the ATO.
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In disqualifying Mr Chidiac, ASIC relied on supplementary reports lodged by Sir Chapel’s liquidator, Anthony Lane of the firm Beacon Advisory and Sourdough (Warringah’s) liquidator, Bradd Morelli of the firm Jirsch Sutherland.
ASIC assisted Mr Lane and Mr Morelli to prepare their reports by providing funding from the Assetless Administration Fund.
Mr Chidiac is disqualified from managing corporations until 29 March 2024 and has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
ASIC has also disqualified a former Western Australian construction and trade industry director for four and a half years.
Between 2013 and 2019, Tom Vorster was an officer or director of three companies operating in the construction and trade industries.
International Turnkey Projects operated in the construction industry providing labour-hire services. UI Projects operated in the mining, maritime and building & construction industries. 360 Turn Around provided electrical and data services to residential and commercial properties in Western Australia.
ASIC found that Mr Vorster acted improperly and failed to meet his obligations as director when he failed to pay outstanding state and federal taxes and lodge tax documents with the ATO in relation to ITP and UI Projects.
At the time of ASIC’s decision, the three companies owed a combined total of $10,113,880 to creditors, including $4,355,635 owing to the ATO.
“He also failed to pay outstanding tax liabilities to the ATO in relation to 360 Turn Around and made loans to related parties to the detriment of ITP and UI Projects,” the regulator said.
“ASIC found he failed to prevent ITP and UI Projects from trading while insolvent and didn’t keep adequate books and records for ITP and UI Projects.”
In disqualifying Mr Vorster, ASIC relied on supplementary reports lodged by ITP’s liquidator, Anthony Warner of CRS Insolvency Services and UI Projects’ liquidators, Cameron Shaw and Blair Pleash of Hall Chadwick.
ASIC assisted Mr Warner to prepare his report by providing funding from the Assetless Administration Fund.
Mr Vorster is disqualified from managing corporations until 24 September 2026.
Mr Vorster has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
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