Victorian director disqualified from managing corporations

Andreas Exadactylos of Preston, Victoria, has been disqualified from managing corporations for two years for his involvement in two failed companies.

Between 2016 and 2020, Mr Exadactylos was a director of two companies, namely:

  • DJ Twins Pty Ltd (ACN 160 860 453) (DJ Twins); and
  • JD Beverages Pty Ltd (ACN 152 236 247) (JD Beverages).

DJ Twins and JD Beverages were involved in wholesale trade and accommodation and food services, respectively.

In regard to DJ Twins, ASIC found that Mr Exadactylos failed to:

  • understand the role and duties of a director;
  • exercise his duties as a director with due care and diligence;
  • exercise his powers and discharge his duties in good faith and for a proper purpose;
  • take all reasonable steps to secure compliance with the obligation to keep written financial records;
  • submit a report as to affairs to the liquidator within 14 days of making the winding up order; and
  • ensure that all books in his possession were delivered to the liquidator.

In making the decision to disqualify Mr Exadactylos, ASIC took into consideration that he was convicted for failing to assist the liquidator of DJ Twins.

The companies had a combined debt of $416,302.16 owed to creditors.

ASIC’s investigation relied on a supplementary report lodged by the liquidator of DJ Twins, Mr Vincent Pirina of Ashton Chace Group. ASIC assisted the liquidator of DJ Twins to prepare a supplementary report by providing the funding from the Assetless Administration Fund.

Mr Exadactylos is disqualified from managing corporations until 14 April 2023.

Background

On 9 June 2020, Mr Exadactylos was convicted and fined $2,800.00 for failing to submit a report as to affairs and for failing to assist Mr Pirina in his capacity as liquidator of DJ Twins.

The convictions follow requests made by Mr Pirina to ASIC who sought assistance through the Request Assistance for External Administrators (RAEA) program. The RAEA program helps liquidators when company officers in external administration fail to comply with obligations to help liquidators.

Section 206F of the Corporations Act 2001 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
  • practicing in the financial services or credit industry.

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.