Ms Violetta Esposito of Peakhurst, NSW, has been disqualified from managing companies for five years for her involvement in two failed companies.
Between 2016 and 2018, Ms Esposito was a director of two companies:
- Esposito Holdings Pty Ltd (ACN 079 763 303) (EH), a trustee for RDJ (UDP) Trust; and
- National Dairy Products Pty Ltd (ACN 605 455 650) (NDP).
In making its decision, ASIC found that Ms Esposito:
- failed to understand the role and duties of a director in respect of EH and NDP;
- failed to exercise her duties as a director with due care and diligence in respect of EH and NDP;
- failed to ensure that a Report on Company Activities and Property (ROCAP) was submitted to the liquidator within 14 days in respect of EH;
- failed to ensure that all books in her possession were delivered to the liquidator in respect of EH; and
- failed to prevent NDP from incurring debts totalling more than $2.3 million when the company was and should have been known to be insolvent.
At the time of ASIC’s decision the two companies owed creditors more than $84 million.
In making its decision to disqualify Ms Esposito, ASIC’s investigation relied on supplementary reports lodged by the liquidator of EH, Matthew Byrnes of Grant Thornton and the liquidators of NDP, Glen Kanevski and Salvatore Algeri of Deloitte. ASIC assisted the liquidator of EH to prepare a supplementary report by providing funding from the Assetless Administration Fund.
Ms Esposito is disqualified from managing corporations until 1 February 2026.
Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies that were wound up and the liquidators lodge reports with ASIC about each company’s inability to pay its debts or alleged misconduct.
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.