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Thursday 23 December 2021

21-372MR NSW director banned from managing corporations for four years

Ramzi Zreika (also known as Ramzi Ghantous) of Guildford, New South Wales has been banned from managing corporations for four years due to his involvement in the failure of four companies.

Mr Zreika was a director of the following four companies:

  • Precision Cabling Services Pty Ltd (ACN 624 191 331),
  • One Hire Excavation Group Pty Ltd(ACN 607 060 604),
  • 365 Civil Constructions Pty Ltd (ACN 625 617 996), and
  • PHA Resources Pty Ltd (ACN 163 046 802).

Precision Cabling Services was involved in the information media and telecommunications industry. One Hire Excavation Group was involved in the business and personal services industry. 365 Civil Constructions and PHA Resources were involved in the construction industry.

ASIC found that Mr Zreika:

  • failed to act with care and diligence in respect of Precision Cabling Services’ statutory obligations to the Australian Taxation Office;
  • failed to deliver all books of Precision Cabling Services and One Hire Excavation Group in his possession to the companies’ liquidators as soon as practicable after they were wound up;
  • was convicted of failing to deliver all of Precision Cabling Services’ and One Hire Excavation Groups’ books to the liquidator as soon as practicable after the winding up order was made; and
  • failed to undertake any due diligence of Precision Cabling Services’ business and financial affairs prior to accepting the role of director.

At the time of ASIC’s decision, the four companies owed unsecured creditors $1,649,778, of which at least $631,615 is owed to the Australian Taxation Office.

In making its decision to disqualify Mr Zreika, ASIC relied on supplementary reports lodged by the liquidator of Precision Cabling Mr Steven Naidenov of Aston Chace Group. ASIC assisted the liquidator of Precision Cabling to prepare a supplementary report by providing funding from the Assetless Administration Fund.

Mr Zreika is disqualified from managing corporations until 2 December 2025.

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.

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.
Last updated: 23/12/2021 12:00