ASIC has disqualified director Anthony Stephen Prior of Darlinghurst, NSW, from managing corporations for five years following his involvement in the failure of three companies operating within the hospitality industry.
Between 1 February 2012 and 20 November 2023, Mr Prior was the director of Cosmopolitan Double Bay Pty Ltd, Jaws Enterprises Pty Ltd and Angelo's Restaurant Pty Ltd.
At the time of ASIC's decision, the three companies owed a combined total of $5,764,098 to unsecured creditors, including statutory debts to the AustralianTaxation Office, Workers Compensation Nominal Insurers as well as other trade creditors.
ASIC found that Mr Prior acted improperly and failed to meet his obligations when he:
- failed to exercise due care and diligence to ensure that the companies met their statutory lodgement requirements,
- improperly used his position to cause detriment to the companies, and to gain an advantage for other companies,
- failed to take reasonable steps to ensure the companies maintained adequate financial records, and
- failed to ensure that the companies did not trade while insolvent.
In disqualifying Mr Prior, ASIC relied on supplementary reports lodged by the liquidator of Cosmopolitan Double Bay Pty Ltd, Shumit Banerjee of the firm Westburn Advisory, and the liquidator of Jaws Enterprises Pty Ltd, Gess Rambaldi of the firm Pitcher Partners. ASIC assisted Mr Banerjee to prepare his report by providing funding from the Assetless Administration Fund.
Mr Prior was also previously involved with Keystone Group Holdings Pty Limited and York Rooftop Pty Limited which failed between June 2016 and April 2017, owing $181,972,300.62 to unsecured creditors.
Mr Prior is disqualified from managing corporations until 5 November 2030.
Mr Prior has 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. 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, or
- practising in the financial services or credit industry.
