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Wednesday 8 September 2021

21-238MR WA company director banned from managing corporations for four years

Robert Francis Brady of Mosman Park, Western Australia, has been disqualified from managing corporations for four years for his involvement in three failed companies.

Between 1999 and 2020, Mr Brady was a director of three companies:

  • Sito Elevator and Escalator Service Company Pty Ltd ACN 089 283 189 (Sito Elevator);
  • Goldgame Corporation Pty Ltd ACN 110 787 856 (Goldgame); and
  • Audio Visual Developments Pty Ltd ACN 009 350 252 (Audio Visual).

Sito Elevator operated as a commercial and residential lift installation, maintenance and refurbishment business in the construction industry. Goldgame acted as a trustee for a domain trust. Audio Visual operated in the business and personal services industry.

ASIC found that Mr Brady failed to:

  • exercise his duties as a director with due care and diligence in respect of Goldgame;
  • take all reasonable steps to secure compliance by Sito Elevator and Goldgame with their obligations to keep the written financial records; and
  • prevent Sito Elevator and Goldgame from incurring debts when it was trading while it was insolvent.

At the time of ASIC’s decision, the three companies owed unsecured creditors $2,234,236, of which at least $1,129,092 is owed to the Australian Taxation Office.

In making its decision to disqualify Mr Brady, ASIC’s investigation relied on supplementary reports lodged by the liquidator of Sito Elevator, Mr Cameron Shaw of Hall Chadwick; the liquidator of Goldgame, Mr Jack James of Rodgers Reidy; and the liquidator of Audio Visual, Mr Gavin Moss of Chifley Advisory. ASIC assisted the liquidators of Sito Elevator and Goldgame to prepare supplementary reports by providing funding from the Assetless Administration Fund.

Mr Brady is disqualified from managing corporations until 24 August 2025.

Background

Section 206F of the Corporations Act 2001 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 corporations;
  • auditing self-managed superannuation funds (SMSFs); or
  • practicing in the financial services or credit industry.
Last updated: 08/09/2021 09:57