ASIC has disqualified former Viewble Media director David Reid, of Pelican Waters, Queensland, from managing corporations for four years due to his involvement in the failure of two companies.
Between 2015 and 2019 Mr Reid was a director of:
- Viewble Media Pty Ltd (ACN 606 991 628); and
- Jasdav Trading Pty Ltd (ACN 616 227 948).
The companies operated a business which involved the installation and lease of audio-visual equipment at the premises of small business owners.
ASIC found that Mr Reid failed to meet his obligations as a director when he:
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- failed to ensure that Viewble Media complied with its Australian Taxation Office lodgement obligations,
- allowed the companies to enter into agreements with more than 4,500 small business owners under a business model that was similar to those operated by companies he was associated with in the UK and USA, which had previously proven to be unsustainable and resulted in the small business owing debts, and
- improperly used his position to cause Viewble Media to make unreasonable or excessive payments to himself of more than $2.1 million.
The total amount owed to creditors across the two companies is estimated to be almost $101 million, of which approximately $42,000 is owed to the Australian Taxation Office.
In disqualifying Mr Reid, ASIC relied on supplementary reports lodged by liquidators Michael Dullaway of Pearce & Heers and Joseph Hansell of FTI Consulting. ASIC assisted Mr Dullaway and Mr Hansell to prepare their reports by providing funding from the Assetless Administration Fund.
Mr Reid is disqualified from managing corporations until 13 July 2026.
Mr Reid has the right to seek a review of ASIC’s decision by the Administrative Appeals 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
- practising in the financial services or credit industry
