ASIC disqualifies Victorian director for five years

Anthony Lee, of Melbourne, Victoria, has been disqualified from managing corporations for five years for his involvement in three failed companies.

Between July 2011 and July 2018 Mr Lee was a director of:

  • Fair Finance Group Pty Ltd (Deregistered) (ACN 151 932 553) (Fair Finance);
  • LD Scaffolding Pty Ltd (In Liquidation) (ACN 623 431 292) (LD Scaffolding); and
  • DLP Scaffolding Pty Ltd (In Liquidation) (ACN 123 605 292) (DLP Scaffolding).

Fair Finance operated in the business and personal services industry and LD Scaffolding and DLP Scaffolding were involved in construction and labour hire services.

In making its decision, ASIC found that Mr Lee:

  • failed to maintain proper company records for all three companies;
  • misused his position as director of LD Scaffolding by submitting false invoices for work that was never performed and instructing that they be paid; and
  • failed to ensure that LD Scaffolding met its statutory obligations relating to lodging tax documents with and debts owed to the Australian Taxation Office.

In making an order to disqualify Mr Lee, ASIC also considered Mr Lee’s previous criminal conviction on 24 August 2017 for failing to provide all of the books and records to the liquidator of Fair Finance as soon as practicable.

ASIC relied on the supplementary report lodged by the liquidators of LD Scaffolding, Alexander Hugh Milne and Richard Rohrt of Hamilton Murphy, Corporate and Personal Advisory. ASIC assisted the liquidators of LD Scaffolding to prepare a supplementary report by providing funding from the Assetless Administration Fund.

Total deficiency across the three companies was approximately $11,427,034.94.

Mr Lee is disqualified from managing corporations until 10 March 2026.

Background

Section 206F of the Corporations Act gives ASIC the power 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 that were wound up and the liquidators lodge reports with ASIC about each company’s inability to pay its debts or alleged misconduct.

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.

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