ASIC has disqualified William (aka Bill) Hanron Redmond of Clayfield, Queensland, from managing corporations for two years due to his involvement in the failure of three companies.
Between October 2016 and July 2020, Mr Redmond was the director of three companies which entered liquidation:
- Redlaw Australia Pty Ltd (ACN 168 908 450);
- Red Lawyers Pty Ltd (ACN 162 229 245); and
- Red Capital Partners Pty Ltd (ACN 601 660 208).
Red Lawyers formerly operated the law practice of Redmond & Redmond, while Redlaw was the service entity to support Redmond & Redmond. Red Capital Partners provided business and personal services.
ASIC found that Mr Redmond failed to meet his obligations as director when he:
- failed to inform himself of, and monitor, Red Lawyers’ and Redlaw’s compliance with their Australian Taxation Office (ATO) lodgement obligations;
- caused harm to Redlaw by failing to take steps to seek the repayment of a loan to another company, of which he is the sole director; and
- gained an advantage when he transferred the business of Redmond & Redmond from Red Lawyers to another company of which he is the sole director.
The three companies were wound up owing a combined total of approximately $1.85million to creditors, including $601,028 owing to the ATO.
In disqualifying Mr Redmond, ASIC relied on supplementary reports lodged by Redlaw Australia’s liquidator, Andrew Weatherley of WCT Advisory Group, and Red Lawyers’ liquidators, Clare Birnie and John Shanahan formerly of Gervase Consulting.
Mr Redmond is disqualified from managing corporations until 18 October 2024.
Mr Redmond has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Section 206F of the Corporations Act allows ASIC 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 of the 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.