Melbourne property spruiker disqualified
A Melbourne property promoter has been disqualified from managing corporations for five years following his involvement in 26 failed companies.
The Australian Securities and Investments Commission (ASIC) found that Henry Kaye breached his duties as a director by failing to document significant intercompany loans within the group and ensuring those loans were properly secured. ASIC stated that the loans were made to companies that were controlled by Kaye and were not repaid, which contributed to the collapse of the group of companies.
It also found that he repeatedly failed to maintain adequate financial records in relation to a number of companies and was not fully aware of the financial position of the main companies within the group.
The disqualification order allows Kaye, under certain conditions, to manage two companies, Dorcas 1 and Medinvest 2, which are the trustee companies to Kaye’s self-managed superannuation funds.
The failed companies he was involved in provided investment and property education services and the running of property investment and development activities.
Kaye has the right to appeal to the Administrative Appeals Tribunal.
AUTHOR
Caroline Munro
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