Former director of National Dairy Products Violetta Esposito has been disqualified from managing companies for five years, the Australian Securities & Investments Commission has ruled.
Violetta Esposito was appointed as a director of Esposito Holdings and National Dairy Products (NDP) after her husband Tony Esposito became temporarily bankrupt. The ASIC investigation related to her directorship of two companies: Esposito Holdings Pty Ltd (EH), a trustee for RDJ (UDP) Trust; and National Dairy Products Pty Ltd (ACN 605 455 650) (NDP).
National Dairy Products (NDP) went into voluntary administration in November 2016 with more than $10 million in debts. Most of its milk suppliers walked away for not being paid. At the time, co-founder of NDP (and Violetta’s fiancée) Tony Esposito blamed Goulburn Valley and Fonterra, alleging they had been offering discounted milk to NDP customers.
At the time of ASIC’s decision, the two companies owed creditors more than $84 million.
ASIC found Violetta Esposito:
- failed to understand the role and duties of a director in respect of 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.
NPD bought milk from around 12 dairy farmers and sold it to food manufacturers.
Prior to owning NPD, Tony Esposito had owned another dairy business called United Dairy Power, which he sold to a Chinese consortium in February 2014 for $70 million. The company collapsed in May 2015.
In 2017, the ABC reported Esposito told a court hearing into the company's collapse she had no experience in the dairy industry or understanding of her obligations as a company director.
She admitted money had been transferred out of the company's accounts to repay a loan used to pay $25,000 for cosmetic surgery and $50,000 for a holiday at Crown Towers.
In May 2017, ABC’s 7:30 Report revealed Tony Esposito withdrew $320,000 from the business over four months from July to October 2016. He said the money was part repayment of $8 million he had loaned the company.
Esposito is disqualified from managing corporations until 1 February 2026.
