ASIC has disqualified former Hygrade Group MD Alf Holmes from managing corporations for five years due to his involvement in the failure of three companies that owe a total of $6.6m to creditors, including $1.4m in taxes.
Hygrade’s former factory in Thomastown, VIC
“ASIC has disqualified Mr Alfred John Holmes, of Hawthorn, Victoria, from managing corporations for the maximum period of five years due to his involvement in the failure of three companies,” ASIC said.
Melbourne forme cutting business Hygrade Cutting Formes – which supplied the printing and packaging industry with tooling for over 60 years – closed its doors in June 2017, with about 50 staff losing their jobs.
ASIC said that between May 1971 and February 2018, Holmes was director of three companies - all involved in the laser and water-cutting industry:
Hygrade Cutting Formes Co. Pty Ltd ACN 004 880 988 (HCF);
Laser Dies Australasia Pty Ltd ACN 090 857 524 (Laser Dies); and
Hygrade Group Pty Ltd ACN 607 402 782 (Hygrade Group).
In delivering its decision, ASIC found that Holmes:
“Lodged false documents with ASIC that appointed individuals as directors of HCF without their consent in an attempt to avoid the personal liability associated with the company’s significant superannuation and taxation debts while he continued to manage the company without being recorded as a director on the corporate register;
“Gained an advantage for himself or related entities by authorising a backdated loan agreement to make HCF liable for his own personal debt;
“Failed to take all reasonable steps to secure compliance by HCF with its obligation to keep written financial records; and
“Failed to comply with HCF’s statutory obligations to lodge necessary documents and pay Superannuation Guarantee Charge on behalf of its employees.”
The three companies owe a combined total of $6,650,938 to creditors, including $1,452,678 to the Australian Taxation Office.
“In disqualifying Mr Holmes, ASIC relied on supplementary reports lodged by HCF’s liquidator, David Vasudevan of Pitcher Partners," the commission said. "ASIC assisted Mr Vasudevan to prepare their reports by providing funding from the Assetless Administration Fund.
“Mr Holmes is disqualified from managing corporations until 25 October 2027."
Holmes has the right to a review of ASIC’s decision by the Administrative Appeals Tribunal.
