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Tuesday 7 January 2020

20-004MR ASIC disqualifies three Gold Coast directors from managing companies

ASIC has disqualified Larry James Matthews, Richard James Matthews and Rowena Ylaya Matthews, of Broadbeach, Queensland, from managing corporations, following the appointment of liquidators to eight companies they managed between them.

Messrs Larry and Richard Matthews have both been disqualified for five years and Ms Rowena Matthews has been disqualified for four years.

The disqualification follows the appointment of liquidators to the following companies:

  • Bluestone Project Management Pty Ltd ACN 137 356 659;
  • Bluestone Constructions Pty Ltd ACN 137 356 686;
  • BluestoneInvest Pty Ltd ACN 146 827 581;
  • Bluestone Development Group Pty Ltd ACN 137 356 631;
  • Bluestone Administration Pty Ltd ACN 137 356 677;
  • Yarrl Property Pty Ltd ACN 150 979 463;
  • Daisyfield Securities Pty Ltd ACN 131 212 729; and
  • Blackrock Developments Pty Ltd ACN 161 715 162.

ASIC found that:

  • Mr Larry Matthews had failed to exercise his duties as a director with due care and diligence, failed to ensure Bluestone Project Management and Bluestone Constructions had paid taxes, failed to prevent Bluestone Project Management and Bluestone Constructions from trading whilst insolvent, improperly used his position to gain an advantage for a related entity and was excluded by the Queensland Building and Construction Commission (QBCC) from being a director or secretary of a QBCC-licensed company;
  • Mr Richard Matthews had failed to exercise his duties as a director with due care and diligence, failed to ensure Bluestone Project Management and Bluestone Constructions had paid taxes, failed to prevent Bluestone Constructions from trading whilst insolvent and was excluded by the Queensland Building and Construction Commission from being a director or secretary of a QBCC-licensed company;
  • Ms Rowena Matthews had failed to exercise her duties as a director with due care and diligence, failed to ensure Bluestone Project Management and BluestoneInvest had paid taxes, failed to prevent Bluestone Project Management and BluestoneInvest from trading whilst insolvent and improperly used her corporate position to gain an advantage for a related entity.

The total amount of debts owed by the companies to creditors exceeded $26.2 million.

In making its decision to disqualify Messrs Larry and Richard Matthews and Ms Rowena Matthew, ASIC relied on supplementary reports lodged by liquidators from Pilot Partners in relation to Bluestone Project Management; from Worrells Solvency & Forensic Accountants, in relation to Bluestone Constructions; and from Rogers Reidy in relation to BluestoneInvest.

Funding from the Assetless Administration Fund was provided to the liquidators from Pilot Partners, Worrells Solvency & Forensic Accountants and Rogers Reidy to assist in preparing the supplementary reports.

Mr Larry Matthews is disqualified from managing companies from 10 December 2019 to 9 December 2024.

Mr Richard Matthews is disqualified from managing companies from 11 November 2019 to 10 November 2024.

Ms Rowena Matthews is disqualified from managing companies from 17 December 2019 to 16 December 2023.

All three directors have the right to appeal to the Administrative Appeals Tribunal.

Background

Mr Larry Matthews was a director of Bluestone Project Management, Bluestone Constructions and Bluestone Development Group.

Mr Richard Matthews was a director of Bluestone Project Management, Bluestone Constructions, Blackrock Developments and Bluestone Administration.

Ms Rowena Matthews was a director of Bluestone Project Management, BluestoneInvest, Bluestone Development, Bluestone Administration, Yarrl Property and Daisyfield Securities. 

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 that were wound up and the liquidator lodge reports with ASIC about each company’s inability to pay its debts or alleges misconduct.

ASIC maintains a ‘Banned and Disqualified Persons’ register which provides information about people who have been disqualified from:

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

More information about the Assetless Administration Fund can be found here.

Last updated: 05/05/2020 03:45