Michelle Denise Hall of Googong, NSW has been disqualified from managing corporations for 30 months for her involvement in two failed companies.
Between 2017 and 2019, Ms Hall was a director of two companies:
- In Precast Pty Limited (ACN 622 284 520), and
- Prestell Hire Pty Limited (ACN 622 284 539).
In Precast and Prestell Hire operated in the construction industry.
ASIC found that Ms Hall breached her:
- duty to prevent In Precast from trading while insolvent;
- duty to act with due care and diligence by allowing In Precast to pay the tax debt of a related entity and to allow loans made to third parties to accumulate;
- duty to act with due care and diligence by failing to ensure that Prestell Hire complied with its statutory obligations to lodge tax documents; and
- record keeping obligations in respect of In Precast and Prestell Hire.
At the time of ASIC's decision, the two companies owed unsecured creditors $3,925,302 including $2,004,555 owed to the ATO.
In deciding to disqualify Ms Hall, ASIC relied on supplementary reports lodged by the liquidator of In Precast, Steven Gladman of Hall Chadwick and the liquidator of Prestell Hire, Frank Lopilato of RSM Australia. ASIC assisted the liquidator of In Precast to prepare a supplementary report by providing funding from the Assetless Administration 8Fund.
Ms Hall is disqualified from managing corporations until 27 April 2024.
Ms Hall's co-director of In Precast Pty Limited and Prestell Hire Pty Limited, Mr David Ross Hall, has been disqualified from managing corporations until 27 October 2026 (refer: 21-364MR).
Background
Section 206F of the Corporations Act gives ASIC the power 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 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
- practising in the financial services or credit industry.
