Kay Elizabeth Sinclair of Crows Nest, NSW, has been disqualified from managing corporations for two years after her involvement in two failed companies.

Ms Sinclair was a director of two companies between 2012 and 2017:

• Sinclair Recruitment [Qld) Pty Ltd (ACN 161 185 557]; and
• ACN 161 185 020 Pty Ltd [formerly Sinclair Recruitment (WA) Pty Ltd].

The two companies were involved in staff recruitment.

In making its decision, ASIC found that Ms Sinclair failed to take reasonable steps to ensure the companies complied with their obligations under the Australian tax laws.

The total amount owed to unsecured creditors of both companies is $3,576,809, including $1,651,928 owed to the ATO.

In deciding to disqualify Ms Sinclair, ASIC relied upon supplementary reports lodged by Grahame Robert Ward of Mackay Goodwin, the liquidator of both companies.

Ms Sinclair is disqualified from managing corporations until 18 October 2023.

Background

Section 206F of the Corporations Act 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 alleging misconduct.

ASIC 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.