ASIC has disqualified James (Jim) Soong of Concord, NSW, from managing corporations for the maximum period of five years after his involvement in two failed companies.
Between February 2020 and January 2022, Mr Soong was a director of two companies:
- Span Form Pty Ltd (ACN 169 669 881) (de-registered); and
- W. Resources Pty Ltd (ACN 632 004 267)
Both companies were involved in the building and construction industry.
ASIC found that Mr Soong failed to:
- meet statutory lodgement requirements with the Australian Taxation Office (ATO);
- pay statutory entitlements to ATO as well as State agencies for payroll tax and workers’ compensation insurance; and
- keep proper financial records.
At the time of ASIC’s decision, the two companies owed a combined total of $2,372,629 to unsecured creditors, including $1,579,888 owed to the Australian Taxation Office.
In disqualifying Mr Soong, ASIC relied upon supplementary reports lodged by Span Form’s liquidator, Darren Vardy of SV Partners and FW Resources’ liquidator, Lee Crosthwaite of Worrells. Mr Vardy and Mr Crosthwaite were assisted to prepare their reports after ASIC approved funding from the Assestless Administration Fund.
Mr Soong is disqualified from managing corporations until 27 February 2028.
Mr Soong has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
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.
ASIC can also provide financial assistance to liquidators to prepare a supplementary report by providing funding from the Assestless Administration Fund.