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ASIC bans father and son directors for 4 years

Philip King

By Philip King

26 October 2023 • 1 minute read

asic bans father and son directors for 4 years
The two were involved in the failures of three construction services companies on the NSW Central Coast.

Father and son directors of NSW construction services companies have been disqualified by ASIC for four years after the businesses failed owing a total of $1.6 million.

Anthony Murray and his son Danny Luke Murray, of Martinsville on the NSW Central Coast, were directors of Site Engineering Solutions (SES), which provided services to the mining, construction and manufacturing industries.

Anthony was also a director of MKD Custom Stainless & Design (MKD) while Danny was a director of Custom Stainless and Design (CSD), both of which provided fabrication and installation services for commercial and residential use.

 
 
ASIC said Anthony allowed SES to trade while insolvent and that subsequently, Danny allowed SES to incur debts that the company was unable to pay.
It was also concerned that both directors had been involved in illegal phoenix activity when assets were transferred from another, unrelated company, Dr McCool, to CSD and later to MKD, leaving the previous company without the means to pay its debts.
In addition, both directors failed to ensure that their companies kept sufficient business records, ASIC said.

When the three companies failed in 2019 they owed a total of $1.6 million, including $748,000 to the ATO.

ASIC said it relied upon statutory reports lodged by Travis Pullen of TJP Advisory, Brisbane, who was appointed liquidator of MKD; Chad Rapsey, of Rapsey Griffiths Turnaround & Insolvency, Newcastle, who was appointed liquidator of SES, and Simon Cathro of Worrells Solvency and Forensic Accountants, Sydney, who was appointed liquidator of CSD.

ASIC assisted each liquidator in preparing a supplementary report by providing funding from the Assetless Administration Fund.

Both were disqualified from managing corporations until 16 October 2027.

Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for a maximum period of five years if, within a seven-year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about each of the company’s inability to pay its debts.

ASIC maintains a register of people banned and disqualified from involvement in the management of a corporation, auditing SMSFs or practising in the financial services or credit industry.

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Philip King

Philip King

AUTHOR

Philip King is editor of Accounting Times, Accountants Daily and SMSF Adviser, the leading sources of news, insight, and educational content for professionals in the accounting and SMSF sectors. Philip joined the titles in March 2022 and brings extensive experience from a variety of roles at The Australian national broadsheet daily, most recently as motoring editor. His background also takes in spells on diverse consumer and trade magazines. You can email Philip on: [email protected]

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