ASIC - Australian Securities and Investments Commission
ASIC - Australian Securities and Investments Commission
06/05/2023 | Press release | Distributed by Public on 06/04/2023 20:54
23-146MR Director duties charge proved and dismissed against former Victorian director
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23-146MR Director duties charge proved and dismissed against former Victorian director
A charge brought against former company director Mr Pardeep Sehgal of Craigieburn Victoria for breaching his director duties has been proven but dismissed.
An ASIC investigation found that in April 2018, Mr Sehgal caused two payments totalling $55,099.33 that was owed to Sehgal Catering Services Pty Ltd (in Liquidation), a company he was the sole director, to be diverted to his partner and Shorya Pty Ltd (ACN 621 531 600). At the time, Mr Sehgal was the sole director of Shorya (refer 22-126MR).
Sehgal Catering went into liquidation on 20 April 2018 with debts of $276,752 owing to creditors including $259,828.02 owing to the Australian Taxation Office
At a sentencing indication hearing in the Broadmeadows Magistrates Court on 18 May 2023, Mr Sehgal pleaded guilty to breaching his director duties. While satisfied the charge was proven, the Magistrate dismissed the charge after taking into account Mr Sehgal's good character, lack of antecedents and extenuating circumstances.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Background
Mr Sehgal was initially charged with two counts of breaching s184(2) of the Corporations Act. At the time of the offending the maximum penalty for breaching s.184(2) was 2000 penalty units or imprisonment for five years, or both.