ASIC has commenced proceedings in the Federal Court to disqualify David John Catsoulis of Southport, Queensland, from managing corporations.
ASIC alleges that Mr Catsoulis was an officer of Warwick Gold Holdings Pty Ltd and Impact Gold Ltd (the Companies) between 2021 and 2024. ASIC also alleges that the Companies purportedly conducted mining operations in Papua New Guinea (Impact Gold) and Queensland (Warwick Gold).
ASIC alleges that the Companies entered into binding disadvantageous agreements under the management of Catsoulis, which ultimately contributed to their failures. In 2024, both of the Companies were ordered to be wound up, with substantial shortfalls.
ASIC alleges that the conduct by Mr Catsoulis contributed to the Companies' failures and that a disqualification is justified. ASIC has sought an order from the Court to disqualify him from managing corporations under s206D of the Corporations Act.
Disqualification from managing corporations protects the wider public, employees and other businesses against the future mismanagement of corporations. The maximum period for disqualification under s 206D is 20 years.
The first case management hearing is listed for 23 July 2025.
Background
Section 206D of the Corporations Act provides that the Court, on application by ASIC, may disqualify a person from managing corporations for a maximum of 20 years if:
- the person has been an officer of two or more failed companies within the last seven years,
- the Court is satisfied that the manner in which the corporation was managed was wholly or partly responsible for the corporation failing, and
- the Court is satisfied that disqualification is justified.
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.
