ASIC disqualifies director from managing companies for five years

ASIC announced that it has disqualified Mr Peter Kalos of Kurnell, NSW, from managing companies for the maximum period of five years as a result of his involvement in nine failed companies.

ASIC found that Mr Kalos:

  • improperly used his corporate position by causing assets to be transferred for little or no consideration to the detriment of unsecured creditors;
  • failed to prevent some of the companies from trading whilst potentially insolvent;
  • failed to pay tax and ensure that proper financial records were kept;
  • failed to exercise his duties as a director with due care and diligence;
  • failed to comprehensively monitor company operations and financial position; and
  • engaged in phoenix activity by transferring the business of an indebted company to a new company leaving the initial company with no assets to pay creditors while continuing what was essentially the same business using the new company.

The nine companies were:

  • Always Demolition & Excavation Pty Ltd ACN 156 095 813
  • PK Management Consulting Services Pty Ltd ACN 089 699 669
  • Arndt Investments Pty Ltd ACN 139 845 695
  • Ramlaw Holdings Pty Ltd ACN 002 449 121
  • Worthville Pty Ltd ACN 111 355 018
  • Platinum Projects (Australia) Pty Ltd ACN 100 034 204
  • PKM Group Holdings Pty Limited ACN 122 847 750
  • Omikron Industrial Supplies Pty Ltd ACN 124 371 508
  • Sylvania Seaside Developments Pty Ltd ACN 111 038 101

In making its decision to disqualify Mr Kalos, ASIC relied on reports lodged by liquidators of the failed companies. ASIC assisted the liquidators of Always Demolition & Excavation Pty Ltd and PK Management Consulting Services Pty Ltd to prepare supplementary reports that were used to disqualify Mr Kalos by providing funding from the Assetless Administration Fund.

The total amount of debts owed by the 9 companies to creditors was almost $8 million.

Mr Kalos’s disqualification took effect from 31 January 2018 and extends to 30 January 2023.

The complete announcement can be seen here.

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