ASIC has disqualified construction industry director Serge Golman of Vaucluse, NSW, from managing corporations for four years due to his involvement in the failure of four companies.
ASIC originally made its decision to disqualify Mr Golman on 14 December 2020. Mr Golman sought a review of ASIC’s decision in the Administrative Appeals Tribunal but his appeal was dismissed by consent on 6 July 2022.
Between October 2008 and July 2015 Mr Golman was the director of four companies:
- Lidcombe Plastering Services Pty Ltd (ACN 133 755 638);
- Lidcombe Plastering Pty Ltd (ACN 159 942 882);
- Glenvale Developments Pty Ltd (ACN 097 050 087); and
- Jamison’s Joinery Pty Ltd (ACN 133 756 224).
ASIC found that Mr Golman acted improperly and failed to meet his obligations as a director when he:
- withdrew $1,658,477 of Lidcombe Plastering Services funds and used them in a manner which appeared to be not in the best interests of the company and at a time when he knew the company had substantial tax debts;
- made further payments of $999,568 from the bank account of Lidcombe Plastering Services to the benefit of his wife;
- transferred Lidcombe Plastering Services assets to Lidcombe Plastering knowing that Lidcombe Plastering Services owed money to creditors and subsequently used Lidcombe Plastering to continue the business of Lidcombe Plastering Services;
- failed to take reasonable steps to ensure Lidcombe Plastering Services kept adequate books and records; and
- poorly managed Lidcombe Plastering Services, Lidcombe Plastering, Glenvale Developments and Jamison’s Joinery to accrue tax debts and failed to maintain adequate financial records.
The four companies owed a combined total of $2,776,850.60 to creditors, including $1,877,642 owing to the Australian Taxation Office.
In disqualifying Mr Golman, ASIC relied on supplementary reports lodged by Lidcombe Plastering Services’ former liquidator Grahame Hill and its current liquidator, Simon Cathro of Cathro & Partners, and Jamison’s Joinery’s liquidator, Grahame Hill. ASIC assisted Mr Cathro and Mr Hill to prepare their reports for Lidcombe Plastering Services by providing funding from the Assetless Administration Fund.
Mr Golman is disqualified from managing corporations until 13 December 2024.
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 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.