Australian Securities & Investments Commission disqualifies Claudio Criniti from managing corporations for five years over seven company failures

The Australian Securities & Investments Commission (ASIC) has disqualified NSW director Claudio Criniti from managing corporations for the maximum period of five years after finding improper conduct and failures to meet director obligations linked to the collapse of seven companies. The disqualification runs until 25 February 2031. Between April 2023 and September 2024, Mr Criniti was director of Lamio Masonry Contractors Pty Ltd, Reliance Food Pty Ltd, Flavorfood Pty Ltd, Foodtreat Pty Ltd, Transcendgroup Pty Ltd, Zenith Air (NSW) Pty Ltd and The Exhibition Centre Pty Ltd. At the time of ASIC’s decision, the seven companies owed over AUD 8 million to creditors, including about AUD 2.6 million to the Australian Taxation Office, AUD 466,288 to Revenue NSW, AUD 434,151 to the Workers Compensation Nominal Insurer and AUD 4,837,932 to trade creditors, which included AUD 298,476 owed to employees for wages, superannuation and leave entitlements. ASIC found Mr Criniti failed to exercise due care and diligence, including by not ensuring tax lodgements were made, allowing insolvent trading, not maintaining adequate books and records for Reliance, and failing to file required reports and provide books and reasonable assistance to Lamio’s liquidator. ASIC relied on supplementary reports from the liquidators of Lamio and Reliance, and provided Assetless Administration Fund funding to support preparation of those reports. Mr Criniti can seek review of the decision by the Administrative Review Tribunal.