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Tuesday 7 December 2021

21-336MR QLD director disqualification for maximum period

Jeffrey Aiken, of Caloundra Queensland, has been disqualified from managing corporations for the maximum period of five years.

Mr Aiken was a director of four failed companies which were placed into liquidation:

  • Qld Prestige Cars Pty Ltd (ACN 145 228 708)
  • ACN 156 056 147 Pty Ltd (formerly B & E Steel Fixing Pty Ltd)
  • Kombi Sixty Five Pty Ltd (ACN 137 909 534)
  • Management Services (WA) Pty Ltd (ACN 162 391 479)

Qld Prestige Cars sold new and used luxury motor vehicles, B&E Steel Fixing provided steel fixing services to the civil, gas, mining and commercial industry in Australia and overseas, Kombi Sixty Five operated a retail surf wear store, and Management Services (WA) provided business and personal services.

ASIC found that Mr Aiken failed to understand his directors’ duties and comply with the law when he allowed himself to be appointed as a dummy director of multiple companies to enable the former director’s resignation prior to liquidation.

The appointment of dummy directors has very harmful consequences for all parties dealing with corporations, particularly as it is likely to mislead or deceive. ASIC disqualified Mr Aiken for the maximum period of five years to deter others from allowing themselves to be appointed as dummy directors.

In deciding to disqualify Mr Aiken, ASIC’s investigation relied on supplementary reports lodged by the liquidators of Qld Prestige Cars, Glenn O’Kearney of GT Advisory & Consulting, the liquidators of B&E Steel Fixing, Steven Naidenov and Johnny Law of Veritas Advisory, and the liquidator of Kombi Sixty Five. Paul Gidley of Shaw Gidley.

ASIC assisted the liquidators of Qld Prestige Cars and B&E Steel Fixing to prepare a supplementary report by providing funding from the Assetless Administration Fund.

Mr Aiken is disqualified from managing corporations until 3 November 2026

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, and those companies  were wound up and a liquidator provides a  report to ASIC about each company’s inability to pay its debts.

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
  • practicing in the financial services of credit industry.
Last updated: 07/12/2021 12:00