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Thursday 23 December 2021

21-370MR ASIC disqualifies former building and construction industry director

Stephen John Thomas, of Highfields, Queensland, has been disqualified from managing corporations for 18 months due to his involvement in four failed companies.

Mr Thomas was a director of four companies which entered into liquidation between 2018 and 2019:

  • Logical Insight Pty Ltd (ACN 624 001 289)
  • Panoramic Homes SA Pty Ltd (ACN 620 694 073)
  • Liberty Homes Australia Pty Ltd (ACN 168 418 399)
  • Alliance Investment Group Pty Ltd (ACN 625 973 908)

Panoramic Homes SA and Liberty Homes Australia were building and construction companies.  Logical Insight provided appointment booking and other professional services for related entities operating within the building and construction industry. Alliance Investment Group provided business and personal services.

ASIC found that Mr Thomas:

  • failed to ensure Logical Insight and Panoramic Homes SA complied with their ATO lodgement obligations;
  • failed to monitor and accurately maintain the financial position of Panoramic Homes SA by allowing it to enter into disadvantageous transactions with related entities;
  • allowed Logical Insight to make loan repayments to himself and a related entity in preference to reducing the companies tax liability;
  • caused detriment to Panoramic Homes SA by failing to repay personal and related entity loans; and
  • allowed Panoramic Homes SA to trade whilst it was insolvent.

ASIC granted Mr Thomas permission to continue as the director of Thomas Family No 3 Pty Ltd (ACN 617 757 123) subject to certain conditions and exceptions.

The total amount owed to creditors across all four companies is estimated to be more than $1.181 million, of which approximately $390,830 is owed to the Australian Taxation Office.

In making its decision to disqualify Mr Thomas, ASIC relied on reports lodged by the liquidators,  Mr Jason Bettles of Worrells Solvency and Forensic Accountants and Mr Stuart Otway of SV Partners SA. ASIC assisted the liquidators in preparing the supplementary reports by providing funding from the Assetless Administration Fund.

Mr Thomas is disqualified from managing corporations until 25 May 2023.

Background

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 a liquidator provides a report to ASIC about each 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 of credit industry.
Last updated: 23/12/2021 12:00