A former director of a dairy company has been disqualified from managing companies for five years by the Australian Securities Investment Commission.
Violetta Esposito of Peakhurst, NSW, has been disqualified due to her involvement in two failed companies, between 2016 and 2018.
She was a director of Esposito Holdings Pty Ltd, a trustee for RDJ (UDP) Trust; and National Dairy Products Pty Ltd.
In making its decision, ASIC found that Ms Esposito:
● failed to understand the role and duties of a director in EH and NDP;
● failed to exercise her duties as a director with due care and diligence in respect of EH and NDP;
● failed to ensure that a report on Company Activities and Property (ROCAP) was submitted to the liquidator within 14 days in respect of EH;
● failed to ensure that all books in her possession were delivered to the liquidator in respect of EH; and
● failed to prevent NDP from incurring debts totalling more than $2.3 million when the company was, and should have been known to be, insolvent.
At the time of ASIC’s decision, the two companies owed creditors more than $84 million.
In making its decision to disqualify Ms Esposito, ASIC’s investigation relied on supplementary reports lodged by the liquidator of EH, Matthew Byrnes of Grant Thornton, and the liquidators of NDP, Glen Kanevsky and Salvatore Algeri of Deloitte.
ASIC assisted the liquidator of EH to prepare a supplementary report by providing funding from the Assetless Administration Fund.
Ms Esposito is disqualified from managing corporations until February 1, 2026.
She told a Supreme Court inquiry in 2017 that money transferred out of the firm's accounts to repay a loan had been used to pay $25,000 to a Melbourne cosmetic surgeon and fund a $50,000 holiday at Crown Towers.
National Dairy Products collapsed in 2016 owing millions to Victorian dairy farmers.
Ms Esposito is the partner of Tony Esposito, a fellow director of NDP and a former owner of United Dairy Power.