Glen Desmond Champley of Sydney, NSW, has been disqualified from managing companies for five years for his involvement in eight failed companies.

Between 2018 and 2021, Mr Champley was a director of eight companies:

• Poros No. 41 Pty Ltd ACN 626 602 462 (Poros No 41);
• Integer Rose Bay Pty Limited ACN 168 734 978 (Integer Rose Bay);
• Poros No. 42 Pty Ltd ACN 626 602 613 (Poros No 42);
• Arete Group (Aust) Pty Ltd ACN 168 734 978 (Arete company);
• ACD Circulation Pty Ltd ACN 637 226 245 (ACD Circulation);
• Arete No. 1 Pty Ltd ACN 168 734 290 (Arete company);
• Arete No. 2 Pty Ltd ACN 168 734 398 (Arete company);
• Arete No. 3 Pty Ltd ACN 168 734 450 (Arete company).

Seven of the companies were involved in labour hire services to the building and construction industry. The eighth, Integer Rose Bay, was a trustee company which purchased property and was involved in the construction of residential apartments.

ASIC found that Mr Champley:

• failed to properly discharge his duties towards Poros No 41, allowing it to trade while insolvent;
• failed to register Poros No 41 for GST and PAYG withholding with the Australian Taxation Office (ATO);
• failed to provide Poros No 41’s liquidator with certain information as requested;
• failed to ensure that Poros No 41 and Poros No 42 maintained adequate books and records;
• failed to ensure that Poros No 41 and Poros No 42 complied with their obligation to lodge documents with the ATO;
• failed to pay GST liabilities of Integer Rose Bay, that was due on the sale of apartments;
• failed in his duty to guide and monitor Poros No. 42 and Integer Rose Bay;
• failed in his duty towards ACD Circulation to ensure there was enough working capital to meet its liabilities as and when they were due to be paid;
• failed to undertake due diligence and understand his managerial responsibilities before becoming the director of Poros No 41, Integer Rose Bay and all the Arete companies, and as such failed to take any steps to address tax issues and prevent the companies from incurring debts.

At the time of ASIC’s decision, the eight failed companies owed unsecured creditors a total of $14,488,659.09, including $1,165,879 owed to the ATO.

In deciding to disqualify Mr Champley, ASIC relied on supplementary reports lodged by the liquidator of Poros No. 41 and Integer Rose Bay, Christopher Damien Darin of Worrells Solvency and Forensic Accountants. ASIC assisted the liquidator to prepare a supplementary report by providing funding from the Assetless Administration Fund.

Mr Champley is disqualified from managing corporations until 16 September 2026.

Background

Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for a maximum period 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 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.

Editor's note 1:

This media release was updated on 6 October 2021 to correct the name of the liquidator.