A court has held a corporate licensed motor car trader’s director criminally responsible for the company’s failure to discharge registered security interests on five vehicles.
George Kotses, a director of New Concept Car Sales (Vic) Pty Ltd, pleaded guilty in the Sunshine Magistrates’ Court to one charge of knowingly authorising or permitting the company to sell five motor cars without having first cancelled registered security interests against those cars in breach of Victoria’s Motor Car Traders Act 1986.
The court ordered Mr Kotses to enter into an adjourned undertaking to be of good behaviour for 12 months.
Mr Kotses was one of three company directors but he was effectively managing day-to-day operations when the breaches happened, between January 2011 and July 2011.
In separate proceedings, the court found that the company had sold or disposed of six motor cars between 22 November 2010 and 16 July 2011, without first cancelling the registered security interests against those vehicles. Amongst other serious concerns, this meant that the previous owners of those vehicles were left with an ongoing liability until the loans were discharged by the company.
The court convicted and fined the company a total of $10,000 and also ordered it to pay costs of $580. The company’s motor car trader’s licence was cancelled in December 2012.
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