A Gold Coast pre-insolvency advisor has been sentenced to eight months imprisonment, which is to be served by way of an intensive correction order. This follows an investigation and subsequent prosecution instigated by the ASIC.
The investigation and prosecution resulted from the advisor arranging for a fictitious party to be appointed as director to a number of companies which were subsequently placed into liquidation. The appointment of the fictitious director was backdated by approximately 18 months.
The ASIC arranged for the removal of the Liquidators of three of the companies and the appointment of alternate Liquidators and it then commenced an investigation into the companies’ affairs and the conduct of those associated with and providing advice to the companies.
A link to the ASIC publication relating to this matter is available here.
It is important that company directors obtain proper advice from qualified professionals in circumstances where companies they are directors of, are, or may become insolvent.
Cactus Consulting provides a full range of pre-insolvency services aimed at providing directors and companies with genuine options to deal with financial distress. Get in touch today on 1300 4 CACTUS or firstname.lastname@example.org.