Caboolture Construction Director Disqualified – 5 Years

The director of three construction companies that collapsed owing more than $2m has been disqualified from managing businesses for five years by the corporate watchdog.  ASIC has imposed the disqualification on MJS from Wamuran, Queensland, prohibiting him from managing corporations due to his deceitful conduct and blatant neglect of directorial responsibilities.

During the period spanning September 2019 to May 2021, MJS served as a director or officer for three companies which subsequently went into liquidation: Caboolture Developments Pty Ltd A.C.N. 628 885 414 (Caboolture Developments), Sinopacific Constructions Pty Ltd A.C.N. 603 013 583 (Sinopacific Constructions), and Land Invest Pty Ltd A.C.N. 627 338 087 (Land Invest).  These entities operated within Brisbane’s building and construction sector.

ASIC’s investigation concluded that MJS should be barred from assuming directorial roles after exploiting corporate structures for personal gain and engaging in fraudulent activities, including:

  • Neglecting statutory duties by failing to lodge tax returns for Caboolture Developments.
  • Withholding the books and records of Caboolture Developments and Sinopacific Constructions from the liquidator.
  • Engaging in dishonest practices within Caboolture Developments by falsifying invoices and bank statements to claim GST refunds, as well as transferring company funds for the benefit of other entities or related parties.

At the time of ASIC’s ruling, the three companies collectively owed $2,344,867.80 to unsecured creditors, with approximately $1,031,522 owed to the ATO.

MJS is prohibited from managing corporations until April 15, 2029, and retains the right to contest ASIC’s decision through the Administrative Appeals Tribunal.

Previously, MJS faced convictions and fines amounting to $4,000 plus costs for his failure to cooperate with the liquidator overseeing Sinopacific Constructions and Caboolture Developments.  In March 2022, he incurred fines totaling $2,000 plus costs for breaching sections 475(2) and 530A(1) of the Corporations Act 2001 (Cth) (Act) due to his non-compliance with reporting obligations and submission of books and records to the liquidator for Sinopacific Constructions.  In September 2022, he received an additional fine of $2,000 plus costs for a violation of s530(1) of the Act, pertaining to his failure to provide Caboolture Developments’ books and records to the liquidator.

The Law Under Section 206F of the Corporations Act, ASIC is authorized to disqualify an individual from managing corporations for a maximum of five years if, within a seven-year timeframe, that person served as an officer in two or more companies that were wound up with a liquidator’s report attesting to their inability to meet debts.

Read the full ASIC media release here.