ASIC has disqualified Justin Lee Fischer of Rose Bay, NSW, from managing companies for three years for his involvement in two failed companies.
While Mr Fischer was not a nominated director of SE QLD Business Services Pty Ltd ACN 611 479 264 (SE QLD) and CCW Queensland Pty Limited ACN 607 611 610 (CCW QLD) (the companies), ASIC found that he was involved in the management of two companies and was therefore acting as an officer. ASIC further found that:
• his involvement in the two companies led to other companies controlled by him obstaining a benefit; and
• he did not act in good faith or in the best interest of the two companies and nor for a proper purpose.
In making its decision to disqualify Mr Fischer, ASIC relied on reports lodged by the liquidators of the failed companies. ASIC assisted the liquidators of SE QLD and CCW QLD to prepare supplementary reports that were used to disqualify Mr Fischer by providing funding from the Assetless Administration Fund.
The total amount of debts owed by the two companies to creditors was around $543,000.
Mr Fischer’s disqualification took effect from 30 April 2019 and extends to 30 April 2022.
On 28 May 2019, Mr Fischer filed an application for review of the disqualification made by ASIC in the Administrative Appeals Tribunal (AAT). The review of ASIC’s decision is yet to be heard.
ASIC has also disqualified Ms Lauren Darwin from managing corporations for five years for her involvement in the companies (see 19-161MR).
Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for up to 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 the company’s inability to pay its debts.
ASIC also maintains a ‘Banned and Disqualified Persons’ register that provides information about people who have been disqualified from:
• involvement in the management of a corporation;
• auditing self-managed superannuation funds (SMSFs); or
• practising in the financial services or credit industry.
Published by Australian Securities & Investments Commission. Reproduced with permission.