A former director at the helm of seven failed companies — two of which accumulated debts in excess of $2 million — has been banned from managing companies for the maximum five-year term.
Cairns resident Steven Paul Corradi was given the ban by the companies regulator after receiving information from liquidators of two of the companies.
ASIC deemed that Mr Corradi had failed to pay taxes and engaged in conduct which it said “showed evidence of illegal phoenix activity”.
The regulator also accused him of using his corporate position to gain personal advantage, trading while potentially insolvent and failing to exercise his director duties with proper diligence.
At the heart of its decision to ban Mr Corradi was information provided by liquidator BDO, over the companies ACN 136 766 777 Pty Ltd (previously known as I want that Course) and IWTC Pty Ltd, with ACN 159 750 259.
ASIC said creditors of these two companies alone are collectively owed more than $2 million.
Mr Corradi’s disqualification from managing companies took effect from 23 July 2019.
The regulator has powers under the Corporations Act to disqualify someone from managing companies if they have held a position in two or more companies that have failed and were unable to pay their debt within a seven-year period.
A ban can also be issued if the liquidator of a company alleges misconduct.
ASIC maintains a Banned and Disqualified Persons register, which is accessible to the public.
Anyone with concerns or suspicions about potential phoenix activity is urged to contact the ATO on 1800 060 062 or complete the ATO’s tip-off form online.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.