ASIC action affects failed QLD retailer

By Craig Zammit

BRISBANE: The Australian Securities and Investment Commission (ASIC) has taken action against Sanjay Kumar, the former director of Tandy in Roselands Shopping Centre, New South Wales, who was found guilty on charges of fraudulently removing company property.

Kumar, who is now based in Queensland, was convicted and fined $1,800, while his company, Baratoll Pty Ltd, which traded as Tandy Roselands, has been appointed a liquidator. As a result of his conviction, Kumar has also been disqualified from managing any corporation until 2 February 2012, and was ordered not to use the company bank account.

Despite this, and within three hours of pleading guilty in the Brisbane Magistrates Court, Kumar withdrew a total of $12,100 from the Baratoll bank account even though he was advised that such actions were prohibited. 

“In the event of a company failure, directors have an important obligation to assist liquidators in the orderly wind-up of the company,” said ASIC deputy executive director of consumer protection, Delia Rickard.

“ASIC will act to ensure that company officers, like Mr Kumar, who deny creditors potential returns and treat the liquidation process with contempt, are brought to account,” said Rickard.

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