The corporate watchdog has disqualified Northern Territory businessman Mark Zappia from managing corporations for five years following the failure of five companies he directed in the transport and removals sectors.
ASIC said the companies — Territory People Pty Ltd, MZ and HC Removals Pty Ltd, TER Transport Pty Ltd, Aussiemove NT Pty Ltd, and TwentyForty Transport Pty Ltd — operated in the Northern Territory or South Australia between 2008 and 2019. At the time of the decision, the companies owed a combined $7,049,582 to unsecured creditors, including $2,227,973 to the ATO, $35,724 to the Department of Employment and Workplace Relations for employee entitlements, $5,597 to the Government of South Australia and at least $1,204,754 to trade suppliers.
The regulator found Mr Zappia acted improperly and failed to meet his obligations as an officer. ASIC said he did not ensure the companies paid their tax debts, and that Territory People and MZ & HC Removals failed to meet statutory lodgement requirements with the ATO and did not maintain proper books and records. It also found he improperly used his position at Territory People by allowing loans to himself and his father, Mr Domenico Zappia, without loan agreements, using company funds to make child support payments, removing company property earmarked for sale by the liquidator, and failing to submit a Report on Company Activities and Property. ASIC further found he allowed Territory People and MZ & HC Removals to continue trading while insolvent.
In reaching its decision, ASIC relied on supplementary reports from liquidator Shane Deane of Dye & Co Pty Ltd, and from Glenn Franklin and Jason Stone of PKF Melbourne. The regulator said it provided funding from the Assetless Administration Fund to assist Mr Deane to prepare statutory reports.
Mr Zappia’s disqualification runs until 7 July 2030. He has the right to seek a review of the decision by the Administrative Review Tribunal.
ASIC noted that under the Corporations Act it can disqualify a person from managing corporations for up to five years if, within a seven-year period, they were an officer of two or more companies that were wound up and a liquidator reported on each company’s inability to pay its debts. The regulator said targeted enforcement action is intended to deter the mismanagement of companies and protect the public, employees and other businesses.
ASIC maintains a public register of banned and disqualified persons covering company management, auditing of self-managed superannuation funds, and practising in the financial services or credit industry.
