ASIC has disqualified director Anthony Azizi of Bexley, NSW, from managing corporations for five years following his involvement in the failure of three construction industry companies.
Between January 2001 and September 2021, Mr Azizi was the director of Trinity Constructions (Aust) Pty Ltd and Regal Consulting Services Pty Ltd. ASIC was satisfied that Mr Azizi, who conceded to be a shadow director, acted as a director of Trinco Pty Ltd.
At the time of ASIC's decision, the three companies owed a combined total of $93,708,563 to over 300 unsecured creditors, including statutory debts to the Australian Taxation Office, NSW Office of State Revenue, Workers Compensation Nominal Insurer, Department of Employment and Workplace Relations in relation to the Fair Entitlements Guarantee, NSW Self Insurance Corporation, as well as other small businesses.
ASIC found that Mr Azizi acted improperly and failed to meet his obligations as director when he:
- Failed to exercise due care and diligence to ensure that the companies met their statutory lodgement requirements,
- Improperly used his position to cause detriment to the companies,
- Failed to take reasonable steps to ensure the companies kept written financial records,
- Failed to ensure that the companies did not trade while insolvent,
- Failed to lodge a Report on Company Activities and Property (ROCAP) with the Liquidator of Regal within 10 days of the winding up, and
- Failed to provide reasonable assistance to the liquidator of Regal by delivering all the books as soon as practicable after the winding up.
In disqualifying Mr Azizi, ASIC relied on supplementary reports lodged by the liquidator of Trinity, Graeme Beattie of firm Worrells Solvency and Forensic Accountants, and the liquidator of Trinco, Henry McKenna of firm Vincents. ASIC assisted Worrells and Vincents to prepare their reports by providing funding from the Assetless Administration Fund.
Mr Azizi is disqualified from managing corporations until 05 July 2030.
Mr Azizi has the right to seek a review of ASIC's decision by the Administrative Appeals Tribunal.
Background
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, or
- practicing in the financial services or credit industry.
