ASIC has disqualified Jagdeep Singh of Jordan Springs, NSW, from managing corporations for the maximum period of five years due to his involvement in the failure of three companies.
Between 2018 and 2021, Mr Singh was a director of three security services companies:
- JWT Group Services Pty Ltd (ACN 616 763 010);
- Power Security Services Pty Ltd (ACN 629 726 281); and
- AIG Group Australia Pty Ltd (ACN 600 879 301).
ASIC found that Mr Singh:
- improperly used his powers as a director to gain an advantage for himself, or someone else, or cause detriment to JWT Group Services, Power Security Services and AIG Group Australia,
- failed to exercise his powers and discharge his duties with due care and diligence in that he did not ensure that JWT Group Services, Power Security Services and AIG Group Australia complied with their statutory lodgement obligations, and
- failed to ensure that JWT Group Services, Power Security Services and AIG Group Australia maintained adequate books and records.
At the time of ASIC’s decision, the three companies owed unsecured creditors $332,303, including $106,781 owed to the ATO.
In disqualifying Mr Singh, ASIC relied on supplementary reports lodged by Steven Kugel of Insolvency Experts, the liquidator of JWT Group Services, Power Security Services and AIG Group Australia.
Mr Singh is disqualified from managing corporations until 21 February 2027.
Background
Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for a maximum period of 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 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.