ASIC has disqualified Laurence Christopher Pereira of Mount Tamborine, Queensland, from managing corporations for the maximum period of five years due a serious level of misconduct that demonstrated behaviours well below the standard expected of Australian company directors.
Between May 2001 and May 2023 Mr Pereira was the director or officer of four companies that entered liquidation:
- East Coast Services Group Pty Ltd,
- Proactive Energy Pty Ltd,
- PG Projects Pty Ltd, and
- LP Finance Pty Ltd.
The companies were involved in electrical, refrigeration, air-conditioning, and mechanical services in Brisbane.
ASIC found that Mr Pereira acted improperly and failed to meet his obligations as director, in that he:
- failed to ensure the companies maintained adequate financial records, complied with their statutory ATO lodgment obligations and paid their tax debts, superannuation, employee entitlements and Workcover premiums,
- improperly used his position as a director to gain advantages for himself and others,
- transferred a business from one company to another without paying creditors of the old company and transferred company assets for no consideration,
- allowed East Coast Services and LP Finance to trade while insolvent, and
- failed to comply with his statutory obligation to apply for a director identification number within the specified timeframe.
At the time of ASIC's decision, the four companies owed unsecured creditors $4,006,382 which included $1,031,357 for unpaid wages, superannuation, and employee entitlements.
In disqualifying Mr Pereira, ASIC relied on supplementary reports lodged by liquidators, Bill Karageozis of McLeod's Accounting and David Clout of David Clout & Associates.
ASIC assisted Mr Karageozis and Mr Clout to prepare their statutory reports by providing funding from the Assetless Administration Fund.
Mr Pereira is disqualified from managing corporations until 1 May 2029.
Mr Pereira has the right to seek a review of ASIC's decision by the Administrative Appeals Tribunal.
Background
Section 206F of the Act allows ASIC to disqualify a person from managing corporations for a maximum period of five years if, within a seven-year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about each of the company's inability to pay its debts.
ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:
- involvement in the management of a corporation;
- auditing self-managed superannuation funds (SMSFs); or
- practising in the financial services or credit industry.
View more information about ASIC's work in combatting illegal phoenix activity.
ASIC is a member of the ATO led Phoenix Taskforce, which comprises federal, state and territory government agencies who collaborate to combat illegal phoenix activity. The aim of the Phoenix Taskforce is to provide a whole-of-government approach to identify, disrupt and prosecute those who engage in or facilitate illegal phoenix activity.
Suspected phoenix activity can be reported to ASIC or the ATO by calling 1800 060 062, online
