ASIC has disqualified former real estate industry director Andrew Robert Galbraith of Sheldon, Queensland, from managing corporations for 18 months after his involvement in four failed companies.

Mr Galbraith was a director of four companies between 2005 and 2021:

• Plastic Recovery Services Pty Ltd (ACN 145 026 580) (deregistered),
• Three Tree Investments Pty Ltd (ACN 115 349 409) (deregistered),
• Aegina Pty Ltd (ACN 115 345 661) (deregistered), and
• ARG Mechanical Pty Ltd (ACN 163 641 816) (deregistered).

Plastic Recovery Services and Three Tree Investments operated in the rental, hiring and real estate services industry. ARG Mechanical operated a mechanical workshop in conjunction with Aegina which owned plant and machinery used in that business.

ASIC found that Mr Galbraith failed to:

• ensure payment of statutory debts, including taxation debts owed to the Australian Taxation Office (ATO) by each of the four companies and payroll tax owed to the Office of State Revenue-Queensland (OSR-Qld) by Aegina,
• act with care and diligence to ensure business activity statements and income taxation returns were lodged with ATO for Aegina and ARG Mechanical, and
• prevent Aegina and ARG Mechanical from trading whilst insolvent.

The total amount owed to unsecured creditors is $13,396,567.92, including $2,799,397.49 owed to ATO and $121,858.29 owed to OSR-Qld.

In deciding to disqualify Mr Galbraith, ASIC relied upon supplementary reports lodged by the liquidator of Aegina and ARG Mechanical, Terrence Rose of SV Partners, Brisbane.

Mr Galbraith is disqualified from managing corporations until 1 August 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.

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.