Investigators found improper accounting practices had negatively impacted the financial viability of the group, leading to the conclusion that Herft had “not acted in good faith”.
The ban took effect on December 19 and will continue until December 18, 2021.
Guvera was founded in 2008 in response to an explosion in illegal music downloads, and officially launched as a digital music platform in 2010.
Six years later, a holding company for the group, Guvera Limited, attempted to make its initial $100 million public offering ahead of listing on the Australian Stock Exchange with a proposed market value over $500 million.
But in a surprise move, the ASX blocked Guvera’s proposed IPO saying it had “exercised its discretion” to refuse admission based on material contained in the company’s application.
A month later, Guvera Australia and Guv Services were placed into administration and later entered into liquidation.
Before its collapse, Guvera boasted it had more than 14 million users across 10 countries and was expanding into India, which would give it the edge over Spotify.
Guvera’s revenue came primarily from advertisers, as its main product was a free music service that included targeted branded content.
Seven Guvera Group companies Herft was a director of
- Guvera Australia Pty Ltd (in liquidation) (Guvera Australia)
- Guvera Operations Pty Ltd (in liquidation)
- Guv Services Pty Ltd (in liquidation) (Guv Services)
- Professional IPO Management Pty Ltd (deregistered)
- KwikTV Australia Services Pty Ltd (in liquidation) (KwikTV)
- The Product People (International) Pty Limited (in liquidation)
- WWP Accounting Group Pty Ltd (deregistered)