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Wednesday 20 December 2017

17-452MR ASIC disqualifies Queensland father and son from managing companies

John Thomas Shannon, of Dalby, Queensland and his son Jason Thomas Shannon, of Oakey, Queensland, have been disqualified from managing corporations for three and half and four years, respectively.

Their disqualification follows the appointment of liquidators to five companies they managed, which included Darling Downs Express Transport Pty Ltd, Line Haul and Bulk Pty Ltd, BTK Communications Pty Ltd, Darling Downs Express Transport Courier Services Pty Ltd and Darling Downs Express Transport Employment Services Pty Ltd.

As a result of information contained in the reports lodged by the liquidators of the failed companies, ASIC was concerned that both men had failed to discharge their director duties by:

  • accruing large debts owed to the Australia Taxation Office, WorkCover Queensland and unsecured creditors;
  • failing to observe requirements to lodge documents with the Australian Taxation Office;
  • failing to ensure the companies complied with their obligations to keep written financial records; and
  • engaging in conduct amounting to illegal phoenix activity. 

Liquidators reported that the total amount owed to creditors exceeded $4.15 million across all five companies.

Background 

Section 206F of the Corporations Act allows ASIC 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, and those companies were wound up and a liquidator provides a report to ASIC about the company’s inability to pay its debts. 

ASIC also maintains a public register of banned and disqualified persons that provides information about people who have been: 

  • disqualified from involvement in the management of a corporation; 
  • disqualified from auditing self-managed superannuation funds (SMSFs); or 
  • banned from practising in the financial services of credit industry. 

Mr John Shannon is disqualified from managing corporations from 8 December 2017 to 7 July 2021, while Mr Jason Shannon is disqualified from managing corporations from 18 December 2017 to 17 December 2021.

The reports prepared by the liquidators of Line Haul and Bulk Pty Ltd, Darling Downs Express Transport Courier Services Pty Ltd and BTK Communications Pty Ltd were funded from the Assetless Administration Fund.

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Last updated: 20/12/2017 02:59