Developer Disqualified for 2 Years

A property developer in Canberra (PKNH) has been disqualified by ASIC from holding positions in corporate management for two years due to his involvement in the collapse of five companies.

From December 2019 to August 2021, PKNH served as the director for five companies that subsequently went into liquidation.  These companies were engaged in commercial and residential property development in Canberra and include:

  1. Lifestyle Home Account (ACT) Pty Ltd (ACN 625 959 097) (Lifestyle Homes)
  2. 3 Property Group 13 Pty Ltd ACN 621 691 932 (3PG13)
  3. Be Athletic Canberra Pty Ltd ACN 619 049 740 (Be Athletic)
  4. A.C.N. 601 334 749 Pty Ltd, formerly Tiger Property Group Pty Ltd (TPG)
  5. A.C.N. 606 934 874 Pty Ltd, formerly 3 Property Group 2 Pty Ltd (3PG2)

ASIC’s investigation revealed that PKNH displayed a lack of care, diligence, and commercial acumen when he:

  • Agreed to become a director of these companies to help the previous directors preserve their credit ratings and continue as directors in the group.
  • Failed to ensure that 3PG2 met its tax obligations and neglected to address the tax debts owed by Lifestyle Homes, Be Athletic, TPG, and 3PG13.
  • Showed a lack of active involvement in the management of Lifestyle Homes, Be Athletic, TPG, 3PG13, and 3PG2.

At the time of ASIC’s decision, the five companies collectively owed $11,867,702 to unsecured creditors, with approximately $5,455,596.54 owed to the ATO and $19,652 owed to the ACT Office of Revenue.

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.