ASIC disqualifies director from managing companies for three years

Yuhui Weng of Sydney, NSW, has been disqualified from managing companies for three years.

Mr Weng was disqualified for his role in the failure of two companies:

  • TS Kitchen Pty Ltd (ACN 608 078 057); and
  • 168 Removalist Pty Ltd (ACN 140 867 447).

TS Kitchen Pty Ltd specialised in the manufacturing of residential kitchens. 168 Removalist Pty Ltd operated as a logistics company and provided transportation services to individuals and retailers.

ASIC found that Mr Weng:

  • failed to ensure that TS Kitchen and 168 Removalist complied with their statutory obligations to pay tax liabilities;
  • failed to provide the liquidator of TS Kitchen and 168 Removalist with the companies’ books and records; and
  • allowed TS Kitchen and 168 Removalist to continue to trade and incur debts while insolvent.

The two failed companies owed unsecured creditors a total of $2,593,713 including $348,664 owed to the Australian Taxation Office.

On 3 January 2019, Patrick Loi of Greengate Advisory was appointed the liquidator of 168 Removalist. On 8 February 2019, Mr Loi was appointed the liquidator of TS Kitchen.

In making its decision to disqualify Mr Weng, ASIC relied on reports lodged by the liquidator. ASIC assisted Mr Loi with the preparation of supplementary reports for TS Kitchen and 168 Removalist by providing funding from the Assetless Administration Fund.

Mr Weng is disqualified from managing corporations until 25 May 2024.

Background

Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for a maximum period 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 the company’s inability to pay its debts.

ASIC also 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.

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