Recent action by ASIC serves as a sharp reminder that director duties are not just theoretical concepts confined to board papers, but rather practical, ongoing obligations with very real consequences.
In April 2026, ASIC disqualified Gold Coast‑based director DJP from managing corporations for the maximum five‑year period available under the Corporations Act. This followed his involvement in the collapse of four companies operating across labour hire, hospitality services, construction, and home technology sectors.
ASIC Findings
ASIC’s findings revealed a pattern of neglect across fundamental governance responsibilities.
The four companies collectively owed more than $3 million to unsecured creditors, including over $1 million to the ATO, at the time of ASIC’s decision. More concerning, ASIC identified serious deficiencies that went beyond financial stress:
- Failure to lodge BAS, income tax returns and PAYG summaries
- Failure to repay outstanding taxation liabilities in a timely manner
- Inadequate books and records, including one company failing to properly record approximately $19 million in bank inflows and outflows
- Failure to secure control of a company bank account, allowing a former director to continue accessing funds
- Failure to submit a required ROCAP to a liquidator within statutory timeframes
These issues collectively painted a picture of loss of control, not just over finances, but over governance itself.
The Findings
Importantly, ASIC can impose disqualification without a court trial, relying heavily on liquidator reports. The message is clear: consistent non-compliance—especially involving tax and record-keeping—will attract serious penalties.
The real risk: governance drift
Most failures arise gradually. As pressures build, reporting slips, obligations are deferred, and control weakens—until problems become critical.
Key takeaways for directors and business owners
This case offers several practical reminders that resonate well beyond this single disqualification. A checklist for pre-liquidation is highly recommended.
1. Financial stress is not defensible
Cash flow pressure does not excuse failure to lodge returns, maintain records, or manage tax obligations. Directors remain personally responsible, even during periods of distress.
2. Records are not optional
ASIC continues to place heavy emphasis on basic record‑keeping. Inadequate books and records are often the first indicator of deeper governance failure, and a frequent basis for enforcement action.
3. Control must be absolute
Allowing third parties or former directors to retain bank access is a serious governance failure with real legal exposure.
4. Liquidation obligations matter
Post‑appointment duties, including ROCAP submissions, should not be treated as administrative afterthoughts. They are statutory obligations that ASIC actively enforces. A pre-liquidation checklist comes to mind.
Advisors add real value
Director duties are judged by action, not intention. In today’s regulatory environment, consistently meeting basic obligations is critical—and early professional advice can make all the difference.
