Apple reseller acquisition goes sour, directors in court

MyMac managing director Steve Bardel is taking the directors of Broad Investments, which acquired his business in March, to court over an alleged failure to disclose information.

MyMac was acquired by Broad Investments in March for $200,000 in cash plus 574 million shares and 25 million incentive options. The 15-year-old reseller was one of the largest privately owned Apple premium resellers in Australia with a turnover of $14 million, according to Broad Investments. Bardel also joined Broad Investments' board of directors after the acquisition.

Broad Investments planned to roll MyMac up with three other companies – managed services provider Mirrus, communications reseller Unified BCG and Apple wholesaler Monsta – to form one business.

Bardel is now suing Broad Investments' four other directors for an alleged failure to adequately disclose the voluntary administration of Mirrus and a winding-up notice against Unified BCG – after Bardel had been appointed as a director.

According to Broad Investments' annual report, Mirrus ceased trading in April shortly after MyMac and Monsta were acquired. Mirrus went into voluntary administration on 8 May. 

The administration ended with a deed of company arrangement on 26 June, which saw Broad Investments back in control of Mirrus. The arrangement requires Mirrus to repay $300,000 to administrator Andrew Wily over 12 months. 

A winding-up notice was placed against Unified BCG on 8 September, but this was settled and dismissed on 10 November.

Broad Investments was suspended from trading on the ASX as of 1 September for failure to lodge periodic reporting on its results. An announcement from the board of directors said the suspension was the results of a misunderstanding between directors on who would actually lodge Broad Investments' financial results.

In October, Brett Crowley replaced Bardel as director of Broad Investment, allowing Bardel to take legal action against Broad Investments' other four directors.

Broad Investments notified the ASX that the company would be a defendant in the New South Wales Supreme Court over Bardel's allegations the directors and company secretary had breached the Corporations Act 2001 by failing to act in the best interest of the company.

The defendants intend to “vigorously defend the proceedings and deny claims brought against them", according to Broad Investments' statement.

The first motion hearing is scheduled for Monday morning.

Broad Investments directors did not respond to CRN's requests for comment in time for publication.