Ronald Lester Cardwell of Cherrybrook, New South Wales, has been charged with dishonestly using his position as a company officer and failing to comply with a notice issued by ASIC.
Mr Cardwell was appointed members’ voluntary liquidator of Loch-Co No 6 Pty Ltd on 2 December 2013.
Following an ASIC investigation, it is alleged that between 4 May 2015 and 17 March 2016, Mr Cardwell dishonestly withdrew $150,367.12 in 12 separate transactions from Loch-Co’s liquidation bank account, for his own financial benefit.
It is also alleged that Mr Cardwell failed to comply with a notice issued to him by ASIC under section 33 of the Australian Securities and Investments Commission Act 2001 (Cth) (“ASIC Act”) requiring him to produce books and records.
This matter was reported to ASIC by registered liquidator Steven Gladman of Hall Chadwick, who was appointed the replacement liquidator to Loch-Co on 17 October 2016 by the NSW Supreme Court, following an application by the members of Loch-Co to have Cardwell removed as liquidator.
The matter was mentioned on 14 October 2022 in the Parramatta Local Court and has been adjourned for further mention on 16 December 2022.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following an ASIC referral.
Background
It is alleged that Mr Cardwell’s conduct contravenes:
- Section 184(2)(a) of the Corporations Act 2001, which at the time of the alleged offending, had a maximum penalty of 5 years imprisonment and/or a fine of up to 2,000 penalty units; and
- Section 63(1) of the ASIC Act, which at the time of the alleged offending, had a maximum penalty of 2 years imprisonment and/or a fine of up to 240 penalty units.
Under section 532(4) of the Corporations Act, a members’ voluntary liquidator is not required to be a registered liquidator if winding up a proprietary company. All other types of insolvent external administration must be conducted by a registered liquidator.
