INVOLVEMENT in illegal phoenix activity will see Queensland-based pharmaceutical wholesaler director, Jenny Huang, barred from managing corporations for four years.
Business regulator, the Australian Securities and Investments Commission (ASIC), announced Huang's disqualification for her role in the failure of two companies - Tasman Pacific Holding Pty Ltd and Palicon Pty Ltd.
ASIC reported that Huang "acted improperly and failed to meet her obligations as a director" by failing to pay "debts and taxes owed to the Australian Taxation Office (ATO)" and not maintaining "adequate books and records" for both companies.
The regulator said the Huang "failed to prevent Tasman Pacific from trading while insolvent, [and] engaged in illegal phoenix activity by selling the assets of Tasman Pacific prior to liquidation to a newly created related entity for less than market value".
ASIC's investigation found Huang "improperly used her position by allowing Tasman Pacific to pay monies to her co-director, who is her husband, for purported reimbursement of credit card expenses and loan repayments in preference to other creditors and at a time when the company appeared to be insolvent".
"At the time of ASIC's decision, the two companies failed owing a combined total of $4,366,335 to creditors, including $401,531 owing to the ATO," ASIC said.
"In disqualifying Huang, ASIC relied on supplementary reports lodged by Tasman Pacific's liquidator, Paul Weston of DW Advisory and Palicon's liquidator, Christopher Darin of Worrells.
"ASIC assisted Weston and Darin to prepare their reports by providing funding from the Assetless Administration Fund.
"Huang is disqualified from managing corporations until 25 Oct 2026."
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