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Land developer faces financial reporting charges

Business

ASIC alleges failure to lodge annual reports for five years and an inadequate number of directors.

By Philip King3 minute read

Melbourne land developer Limebrook Corporation Ltd has been charged with five counts of failing to meet its financial reporting obligations and one count of failing to have the required number of company officers.

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ASIC alleges that Limebrook failed to lodge annual reports on time for five financial years from 2016-20, and did not have the required number of directors between 2 February 2018 and 8 February 2022.

As a public company, Limebrook is required to provide financial reports to ASIC within four months of the end of each financial year and meet minimum officeholder requirements of three directors, at least two of which reside in Australia.

Failure to lodge full-year financial reports with ASIC is a breach of section 319(1) of the Corporations Act and in Limebrook’s case would attract a maximum penalty from $54,000 to $266,400.

Failing to meet minimum officeholder requirements is a breach of sections 201A(2) of the Corporations Act and for offences after 1 July 2020 the maximum penalty is $42,000.

The matter was heard in the Frankston Magistrates’ Court on 19 May 2022 and was adjourned to 16 June 2022.

Meanwhile, a former Victorian catering company director has been charged with breaching directors’ duties following an ASIC investigation and could face jail.

Pardeep Kumar Sehgal of Craigieburn was the sole director of Sehgal Catering Services, now in liquidation. 

ASIC alleges that in April 2018, Mr Sehgal caused two payments for invoices owed to Sehgal Catering totalling $55,099.33 to be diverted to his partner and Shorya Pty Ltd.

ASIC further alleges that Mr Sehgal dishonestly used his position as a director with the intention of directly or indirectly gaining an advantage for himself or someone else.

On 20 April 2018, Sehgal Catering went into liquidation with debts of $276,752, including $259,828 owing to the ATO. Paul Burness of Worrells was appointed liquidator and ASIC commenced its investigation after receiving his  report.

It is alleged that Mr Sehgal contravened s184(2) of the Corporations Act, which carries a maximum penalty of 2000 penalty units or imprisonment for five years, or both.

Following charges being served on Mr Sehgal, he repaid $55,099.33 to Sehgal Catering.

The matter was listed for mention at the Broadmeadows Magistrates' Court on 3 May 2022 and was administratively adjourned to 5 July 2022.

Both matters are being prosecuted by the Commonwealth Director of Public Prosecutions.

Land developer faces financial reporting charges
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Philip King

Philip King

AUTHOR

Philip King is editor of Accountants Daily and SMSF Adviser, the leading sources of news, insight, and educational content for professionals in the accounting and SMSF sectors.

Philip joined the titles in March 2022 and brings extensive experience from a variety of roles at The Australian national broadsheet daily, most recently as motoring editor. His background also takes in spells on diverse consumer and trade magazines.

You can email Philip on: This email address is being protected from spambots. You need JavaScript enabled to view it.

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