ASIC has disqualified Antonio Torcasio of Melbourne, Victoria, from managing corporations for the maximum period of five years due to his involvement in the failure of the following eight companies:
- RMB Melbourne Pty Ltd ACN 617 786 017 (RMB)
- Wheelers Hill Hair and Beauty Pty Ltd ACN 126 063 545 (Wheelers Hill)
- RE Clarendon Salon Pty Ltd ACN 614 823 835 (RE Clarendon)
- RE Rowville Salon Pty Ltd ACN 614 863 820 (RE Rowville)
- Italian Enterprises Pty Ltd ACN 608 206 300 (Italian Enterprises)
- Torcmen Pty Ltd ACN 619 221 108 (Torcmen)
- Head Puncho Pty Ltd ACN 635 349 913 (Head Puncho)
- Readmin Pty Ltd ACN 635 164 671 (Readmin)
RMB, RE Rowville and Wheelers Hill operated businesses in the hair and beauty industry. RE Clarendon, Italian Enterprise, Torcmen, Head Puncho and Readmin operated in retail and related service industries.
In disqualifying Mr Torcasio, ASIC found he:
- failed to ensure company compliance with continuing statutory obligations including taxation lodgements and payment of outstanding liabilities in relation to RMB, Wheelers Hill, RE Clarendon, RE Rowville, Italian Enterprises, Torcmen and Head Puncho
- failed to ensure that RE Clarendon, RE Rowville, Italian Enterprises and Readmin maintained adequate books and records
- failed to exercise care and diligence by not ensuring RMB, Wheelers Hill and RE Rowvillle complied with its statutory obligations to the Australian Taxation Office (ATO)and by failing to ensure that Wheelers Hill was registered for payroll tax and had paid its Superannuation Guarantee Charge (SCG) to the ATO
- failed to act in good faith and in the best interests of Wheelers Hill by entering into a business sale agreement while the company had outstanding tax debts, leaving the company without realisable assets to meet creditor claims, and by permitting RE Clarendon and Italian Enterprises to provide loans despite the companies being in significant financial distress
- improperly used his position by transferring RE Clarendon’s business and assets to another company, leaving RE Clarendon without sufficient assets to pay its creditors, while the new company continued operating the same business for the benefit of related parties, and
- failed to prevent RMB, Wheelers Hill, RE Clarendon, RE Rowville and Italian Enterprises from incurring debts while insolvent.
At the time of ASIC’s decision, the eight companies owed over $3 million to unsecured creditors, including more than $2.5 million owed to the ATO.
In disqualifying Mr Torcasio, ASIC relied on supplementary reports lodged by Michael Caspaney of Menzies Advisory Liquidators and Receivers and Paul Vartelas of B.K Taylor and Co liquidators in respect of the failed companies. ASIC assisted the liquidators to prepare their reports by providing funding from the Assetless Administration Fund.
Mr Torcasio is disqualified from managing corporations until 29 July 2031.
Mr Torcasio has the right to seek a review of ASIC’s decision by the Administrative Review Tribunal.
Background
Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for a maximum period of five years if, within a seven year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about each of the company’s inability to pay its debts.
ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:
- involvement in the management of a corporation
- auditing self-managed superannuation funds (SMSFs), or
- practicing in the financial services or credit industry.
