A company director who pleaded guilty to charges relating to phoenix activity has been given a 12-month jail sentence, but then released on a two-year good behaviour bond.
Queensland man Allan Ronald Saunders, initially faced court in September on 13 charges relating to phoenix activity.
At the time, ASIC accused Mr Saunders – the sole director of Metropolitan Design – of directing multiple payments owed to the business into his personal bank account immediately prior to the business collapsing in September 2015.
That had the effect of denying its sole creditor, the ATO, of $235,626 in monies owed.
At the initial court hearing, Mr Saunders reportedly did not enter a plea, and the matter was adjourned until 19 October.
A month later on 21 November, ASIC revealed that Mr Saunders had pleaded guilty to 13 counts of breaching director duties.
The regulator said that the Pine Rivers Magistrates Court had sentenced him to 12 months behind bars, but was released on a two-year, $3,000 good behaviour bond.
ASIC noted that because of the conviction, Mr Saunders is also automatically banned from managing companies for a five-year period.
Anyone wishing to report suspected phoenix activity can do so via the Phoenix Hotline on 1800 807 875.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.