ASIC has disqualified Saleh Zreika, also known as Salem Zreika, of Villawood, NSW, from managing corporations for the maximum period of five years over his involvement in the failure of twelve companies.
ASIC found that Mr Zreika does not possess the skills to manage a company and should not manage corporations given that he:
- managed twelve corporations in such a way that each failed owing significant amounts, with no ability to pay creditors,
- disregarded statutory lodgement duties by failing to lodge many documents with the Australian Taxation Office (ATO) in the period 2017 to 2020,
- avoided paying statutory debts accrued by TS Resources Pty Ltd, Home Retail Solutions Pty Ltd and Trinity Corporate Services Pty Ltd,
- allowed TS Resources to lend $627,030 to related parties for no commercial reason and in an uncommercial manner, with $266,560 of the money loaned yet to be repaid,
- managed TS Resources and Home Retail such that they did not keep proper books; and
- failed to provide adequate responses when liquidators requested information.
At the time of ASIC’s decision, the twelve companies owed a combined total of $8,281,826 to unsecured creditors, including $1,995,858 owing to the ATO and $3,425,847 owing to Revenue NSW.
In disqualifying Mr Zreika, ASIC relied on supplementary reports lodged by Ian Niccol and Vincent Pirina of Aston Chace Group for TS Resources Pty Ltd and Home Retail Solutions Pty Ltd. ASIC assisted Mr Niccol and Mr Pirina to prepare their reports by providing funding from the Assetless Administration Fund.
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Mr Zreika is disqualified from managing corporations until 1 September 2027.
Mr Zreika has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Between May 2011 and May 2021, Mr Zreika was a director of twelve companies:
- TS Resources Pty Ltd (ACN 616 574 728),
- Home Retail Solutions Pty Ltd (ACN 627 013 852),
- PHA Resources Pty Ltd (ACN 163 046 802),
- Trinity Corporate Services Pty Ltd (ACN 611 061 995).
- Aiims Group NSW Pty Ltd (ACN 613 335 612),
- Conway Resources Pty Ltd (ACN 615 967 685),
- Professional Contracting (NSW) Pty Ltd (ACN 064 075 814),
- Sun Construction Services Pty Ltd (ACN 136 984 551),
- Major Investment Group II Pty Ltd (ACN 102 221 803),
- Plant Hire Australia (NSW) Pty Ltd (ACN 146 428 391),
- PHA Management Pty Ltd (ACN 140 211 516), and
- PHA Resources (NSW) Pty Ltd (ACN 163 046 811)
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.