It seems that the Government wants to extract the $5.5 million fine awarded by the Federal Court against Clarity1 Pty Ltd ($4.5 million) and myself ($1 million). The corporate regulator contacted me last Monday “You have been chosen by the “Solvency Team” to be subject to the requirement of proving your Solvency” said the polite public servant on the other end of the phone.
With a fine 5 times the company’s turnover and 45 times it previous years profit it is pretty obvious that if the Government presses for payment, that’s the end of Clarity1. And even though the judgment against me included an explanation by Justice Nicholson that there was little possibility that the company (or myself for that matter) had the capacity to pay, it seems a warning is not enough for the regulators – they want blood too!
So, it would seem that Carty1 will provide work for the accountancy professionals – the liquidators.
And I will be left to negotiate the payment the $1 million fine against me.
My friend Stuart Burke of Los Angeles wrote and said:
No publicity is totally negative and I should get the best from what he saw as:
Perth Business Man Punished by Australian Government for Educating Future Business Leaders
But it is all a state of mind... so I have been looking for inspiration wherever it can be found. And in Donald Trumps new book Trump 101 he comments that the reader maybe aware of his brush with debt 10 or so years ago. He says that he could have “curled up and hid in a corner” or used the situation to inspire he to rise to greatness. He chose the second course, and took the temporary situation as being a challenge and opportunity. History shows that he recovered and has prospered.
He comments “At the time I was $9 BILLION is debt…”
Well, what’s a paltry $1 million compared to that! So that’s the new challenge. Let’s get on with it and create a more vibrant business that educates future business leaders here, in New Zealand, Asia and Europe.
Want to come along for the ride… I look forward to your continued support.