ASIC has disqualified NSW director Genna Raber from managing corporations for the maximum period of five years due to his involvement in the failure of three companies.
Mr Raber was the director of three companies between 2012 and 2024, which failed between 2022 and 2024:
- Myriad Development and Construction Group Pty Ltd ACN 154 827 522
- Render Design (Aust) Pty Ltd ACN 165 238 808, and
- Myriad Projects (Aust) Pty Ltd ACN 169 426 939.
Myriad Development, Render Design and Myriad Projects all operated in the construction industry, with Render Design providing cement rendering and finishing services.
ASIC found that Mr Raber:
- improperly used his position to cause detriment to Myriad Development and Myriad Projects, and gain an advantage for himself and parties related to him
- failed to exercise due care and diligence to ensure that Render Design and Myriad Projects met their statutory lodgement obligations, and
- failed to keep proper financial records and prevent trading while insolvent in relation to Myriad Development and Render Design.
Myriad Development entered contracts in or around January 2020 to construct or refurbish two Russian embassies at Yarralumla and Griffith. By mid-2022, the projects had not commenced, and the agreements were terminated.
At the time of ASIC's decision, the three companies owed a total of $14,536,477 to priority and unsecured creditors, including the ATO.
ASIC previously disqualified Mr Raber from managing corporations for 2.5 years, from 19 August 2019 to 20 April 2022. Mr Raber was found to have been managing Myriad Development during this period, while his wife Yael Raber was the appointed director.
ASIC also found that Mr Raber had a complete disregard for his duties as a director and failed to improve his management skills and knowledge since his previous disqualification. As such, he has been disqualified for the maximum period allowable under section 206F of the Corporations Act 2001.
In disqualifying Mr Raber, ASIC relied on supplementary reports lodged by the liquidators of Myriad Development, Mitchell Ball and Gavin King of Mackay Goodwin, and the liquidator of Render Design, Christopher Darin of Worrells. ASIC assisted the liquidators to prepare reports by providing funding from the Assetless Administration Fund.
Mr Raber is disqualified from managing corporations until 11 December 2030.
Mr Raber has the right to seek a review of ASIC's decision by the Administrative Review 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 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
- practicing in the financial services or credit industry.
