ASIC sends former director to jail for breaching director’s duties

Following an ASIC investigation, Mr Garry Leonard Matthews, a former director of Carrington Carpet Services Pty Ltd (Carrington), has been sentenced to three years jail after earlier pleading guilty to dishonestly and recklessly using his position as a director to cause detriment to the company.

Mr Matthews was sentenced to serve 12 months in jail with two years suspended.

Mr Matthews, of Darwin, used Carrington to operate a carpet business in Mount Waverley, Victoria. ASIC’s investigation found that Mr Matthews used his position as the director of Carrington to authorise the withdrawal of numerous bank cheques totalling $1,075,300 belonging to Carrington for his personal use, unrelated to the carpet business operated by Carrington.

As a result of Mr Matthews’ conviction today, he is automatically disqualified from managing corporations for five years upon his release from jail.

Greg Tanzer, ASIC
Greg Tanzer, ASIC

ASIC Commissioner Greg Tanzer said:

Company directors are required to act honestly and in the interests of the company they represent. The consequences of failing to discharge these obligations are serious, including jail and a lengthy disqualification from the management of companies’.

ASIC sends former director to jail for breaching director's duties

Send this to a friend