The former director of a Victorian business has pleaded guilty to illegally withdrawing funds from her business while in liquidation, despite the business having debts of over $700,000.
Lorraine Bullock is a former director of Twenty12, a liquor store that operated in Healesville, Victoria.
The company was put into liquidation in October 2015, with multiple creditors owed a total of more than $700,000.
Despite the liquidation, an investigation by ASIC found that Ms Bullock made an unauthorised transaction by withdrawing $20,655.18 from the collapsed company and transferring it to a related company, of which her son was a director.
Attending Melbourne Magistrates Court last month, Ms Bullock pleaded guilty to one charge of fraudulently removing company property.
She escaped a conviction that would have barred her from being a company officer, and instead received an 18-month good behaviour bond and paid a $1,000 “recognisance”.
According to ASIC, Ms Bullock’s actions were in violation of Section 590 of the Corporations Act.
Among other provisions, the section states that it is an offense to be “engaged in conduct that resulted in the fraudulent concealment or removal of any part of the property of the company to the value of $100 or more”.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.