ASICs Investigation of Kleenmaid Group - 2453 Words

Research on ASIC’s investigation about the continuation of trade by Queensland’s sunshine coast based national importer and distributor of whitegoods, also the operator of Kleenmaid brand of kitchen appliances, Kleenmaid Group, despite becoming insolvent from March 2008. The Fact: Three former directors of national whitegoods distributor Kleenmaid, Andrew Eric Young, Bradley Wendell Young and Gary Colleyer Armstrong were accused of 20 criminal charges including a $13 million fraud and insolvent trading, following an ASIC investigation. The trio were charged with 18 counts of criminal insolvent trading of debts totalling more than $4 million and a $13 million fraud committed on Westpac Bank (ASIC 2012). Gary Armstrong and Andrew Eric†¦show more content†¦(1A) For the purposes of this section, if a company takes action set out in column 2 of the following table, it incurs a debt at the time set out in column 3. When debts are incurred | | | | Action of company | When debt is incurred | 1 | paying a dividend | when the dividend is paid or, if the company has a constitution that provides for the declaration of dividends, when the dividend is declared | 2 | making a reduction of share capital to which Division 1 of Part 2J.1 applies (other than a reduction that consists only of the cancellation of a share or shares for no consideration) | when the reduction takes effect | 3 | buying back shares (even if the consideration is not a sum certain in money) | when the buyback agreement is entered into | 4 | redeeming redeemable preference shares that are redeemable at its option | when the company exercises the option | 5 | issuing redeemable preference shares that are redeemable otherwise than at its option | when the shares are issued | 6 | financially assisting a person to acquire shares (or units of shares) in itself or a holding company | when the agreement to provide the assistance is entered into or, if there is no agreement, when the assistance is provided | 7 | entering into an uncommercial transaction (within the meaning of section 588FB) other than one that a court orders, or a prescribed agency directs, the company to enter into | when the transaction