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Director banned after 18 failures and $26m debt

Director banned after 18 failures and $26m debt

Alarm, warning

The former director of a staggering 18 failed businesses, which collectively accumulated over $26 million in debts, has had his disqualification from managing companies upheld, after a tribunal rejected his appeal.

NSW man Lubo Zivanovic was disqualified from being a director by ASIC in February 2016 for a period of three years, after he racked up a long list of failed businesses.

Those businesses were:

  • Backvet Pty Ltd
  • Bargara Rentals Pty Limited
  • Bargara Services Pty Limited
  • Cebakay Pty Ltd
  • Devlaw Pty Ltd
  • Ezocom Pty Ltd
  • Fratocom Pty Ltd
  • Girraween Scaffold (Australia) Pty Ltd
  • Invotow Pty Ltd
  • Kakconab Pty Ltd
  • Oneover Pty Ltd
  • Markaway (NSW) Pty Ltd
  • Mountrich Pty Ltd
  • Muneemake Pty Ltd
  • Notxituk Pty Ltd
  • Tinaduke Pty Ltd
  • Toandtwo Pty Ltd
  • Twooftwo Pty Ltd

All 18 firms were in the building and construction sector, according to ASIC, and all found their way into the hands of liquidators between 2008 and 2014.

According to ASIC, liquidators said the companies had failed to keep proper financial records, and estimated the total “deficiency” at more than $26 million — $26,855,268 to be exact.

The liquidators, identified as Ezocom and Noxituk, also alleged that the businesses failed due to Mr Zivanovic’s poor management, and that they had failed to pay tax or keep company records.

Despite such extensive losses, Mr Zivanovic appealed ASIC’s decision to ban him from managing a company, and took his case to the Administrative Appeals Tribunal (AAT).

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However AAAT upheld Mr Zivanovic’s disqualification, and lifted a subsequent suppression order of the banning.

As a result of the ruling, his ban from managing companies remains in place, and will expire on 18 February 2019.

Despite the long list of failed companies and sizeable debts accrued, Mr Zivanovic did not receive the full five-year ban ASIC is legally able to hand down to anyone responsible for the collapse of two or more businesses within a seven-year period.

 

Director banned after 18 failures and $26m debt
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