JT of Potts Point, NSW, was disqualified from managing corporations for 3 years due to his involvement in the failure of several companies. The disqualification results from liquidator reporting to ASIC and Federal Government grants provided to the liquidator for such a purpose.
Between November 2009 and April 2021, JT was the director of six companies that went into liquidation between October 2018 and April 2021 and his involvement in a 7th which entered liquidation in October 2018.
ASIC found that JT failed to fulfil his obligations as a director in various ways, such as not ensuring compliance with statutory lodgement obligations, not preventing companies from trading while insolvent, and not maintaining proper financial records. His misconduct, was found by ASIC to include the misuse of his position and engagement in illegal phoenix activity.
At the time of the decision, the companies owed significant amounts to unsecured creditors, including the Australian Taxation Office (ATO). The disqualification period is until July 19, 2026 subject to a potential review of ASIC’s decision through the Administrative Appeals Tribunal.
ASIC has the authority to disqualify individuals from managing corporations if they have been officers of multiple companies that were wound up due to an inability to pay debts. ASIC maintains a register of banned and disqualified persons to provide information about those who have been disqualified from various corporate and financial roles.
When considering liquidation, it is important to ask what could happen in terms of director bannings, uncommercial transactions and the like. Ensure you understand all the options that are available in your circumstances and be aware that a liquidator is required to report potential misconduct to ASIC. Read the full ASIC media release here.