ASIC has disqualified Katsuyoshi ('Ken') Sadamatsu, of Sydney, New South Wales, from managing corporations for a period of 5 years, after his involvement in five failed companies were that were involved in the accommodation and food services industries in New South Wales.
Mr Sadamatsu was a director of five failed companies between 2017 and 2026:
- Sake Enterprise Pty Ltd ACN 150 501 287 ('Sake Enterprise')
- New I.N.G Consulting Australia Pty Ltd ACN 617 022 634 ('New I.N.G Consulting')
- Masuya Pty Ltd ACN 152 539 118 ('Masuya')
- Miso Pty Ltd ACN 152 545 027 ('Miso')
- Miso GS Pty Ltd ACN 630 636 912 ('Miso GS').
At the time of ASIC's decision, the five companies owed a combined total of $4,375,875.63 to unsecured creditors. This included $4,173,350.93 owed to the ATO and $4,935.04 owing for workers compensation.
ASIC found that Mr Sadamatsu acted improperly and failed to meet his obligations as an officer when they:
- failed to ensure that Sake Enterprise, New I.N.G Consulting, Masuya and Miso complied with their statutory obligations to the Australian Taxation Office
- failed to maintain proper books and records for all five companies
- failed to assist the liquidators by providing books and records to the liquidator for New I.N.G Consulting
- improperly used his position as director to sell a motor vehicle owned by New I.N.G Consulting under market value causing detriment to New I.N.G Consulting
- improperly used his position as director by selling business and assets of Sake Enterprises, Masuya, Miso and Miso GS to related entities, causing detriment to those companies, and
- failed to prevent Sake Enterprise and New I.N.G Consulting from insolvent trading.
In disqualifying Mr Sadamatsu, ASIC relied on supplementary reports lodged by liquidators Paul Weston of DW Advisory and Steven Staatz of Vincents.
ASIC assisted to prepare the statutory reports for Sake Enterprises and New I.N.G Consulting by providing funding from the Assetless Administration Fund.
Mr Sadamatsu is disqualified from managing corporations until 27 April 2031.
They have the right to seek a review of ASIC's decision by the Administrative Review Tribunal.
Background
Section 206F of the Corporations 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.
Through enforcement action against selected directors who contravene s206F, ASIC demonstrates that there are appropriate consequences for the mismanagement of small and large companies. ASIC continues to take targeted action against individual directors to protect the wider public, employees and other businesses against the future mismanagement of companies.
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.
