Brimarco director faces court on director’s duty offence

JUNE 15, 2017

The former director of liquidated coach and trailer manufacturer Brimarco will contest a director's duty offence.

James Meaden, of Invermay, did not appear at Ballarat Magistrates Court on Thursday.

A prosecutor from the Commonwealth Director of Public Prosecutors asked the court to set the matter down for a two-day contested hearing.

Meaden's lawyer agreed.

It is alleged Meaden dishonestly transferred $34,000 to gain advantage for himself or someone else before the business he was the director of went into liquidation.

He was charged with a director's duty offence under the Corporations Act in February.

Meaden's contested hearing will be held on October 10 to 11 at Ballarat Magistrates Court.

FEBRUARY 8, 2017

 The former director of liquidated coach and trailer manufacturer Brimarco has fronted the Ballarat Magistrates Court.

James Meaden, of Invermay, appeared on Wednesday charged with a director’s duty offence under the Corporations Act.

The Commonwealth Director of Public Prosecutions is prosecuting the matter and are alleging Meaden dishonestly transferred $34,000 to gain advantage for himself or someone else before the business he was the director of went into liquidation.

The matter has been adjourned to April 12 for a half-day to hear from both prosecution and Meaden’s lawyer.

Meaden’s legal representation said at this stage she had no instructions to enter a plea.

On Wednesday an application to have the matter moved to Melbourne was rejected.

DECEMBER 21, 2016

The Australian Securities and Investment Commission (ASIC) has alleged that Mr Meaden knowingly authorised the transfer of funds from a Brimarco company account to Tough As Pty Ltd, a related entity in which Mr Meaden was also a sole director, one day before Brimarco was placed in liquidation; and transferred the funds knowing that Brimarco had numerous creditors that were owed in excess of $2 million.

Brimarco specialised in purpose-built and production vehicles, trailers and vehicle bodies.

The effect of the transfer of the funds meant that creditors of the company were denied access to the company’s assets after it was placed in liquidation.

The Ballarat manufacturing business went into receivership in April 2015 owing over $2 million to workers, suppliers, and other companies. 

At the time, the sale of plant by receivers yielded $78,000 - well short of the demands of creditors according to PKF Accountants liquidator Mark Roufeil’s report. 

In total Mr Roufeil said Brimarco owed $498,756 in wages and superannuation, leave entitlements and redundancy payments. 

The rest of the $2,080,651.06 in debts was owed to Ballarat businesses, including over $15,000 for one supplier, consulting firms and larger companies owed in the tens of thousands.