ASIC has disqualified Mathew Craig Lynch of Langwarrin Victoria, from managing corporations for three years due to his involvement in the failure of three companies.
Between April 2015 and January 2022 Mr Lynch was the director of three companies that entered liquidation:
- Option One Construction Pty Ltd (ACN 605 515 302) (Option One Construction),
- A.C.N. 608 209 445 Pty Ltd (ACN 608 209 445) (previously Ultro Construction & Recruitment (Sydney) Pty Ltd)(Ultro Construction), and
- Ultro Construction & Recruitment Services (ACN 149 709 188).
The companies were involved in recruiting and providing labour hire to the building industry in NSW.
ASIC found that Mr Lynch failed to meet his obligations as a director when he:
- failed to comply with statutory obligations with the Australian Taxation Office (ATO) and to pay Business Activity Statements, payroll taxes and Superannuation Guarantee Charge for Option One Construction and Ultro Construction,
- failed to pay Workers Compensation premiums for Ultro Construction,
- failed to deliver all the books in his possession to the liquidator as soon as practicable after Ultro Constructions was wound up,
- did not ensure that Option One Construction invoiced it clients correctly for the labour hire services and did not maintain appropriate financial records, and
- failed to prevent insolvent trading by Option One Construction.
At the time of ASIC’s decision, the three companies owed a combined total of $10,601,299.37 to unsecured creditors including $730,019.84 owed to the ATO.
In disqualifying Mr Lynch, ASIC relied on supplementary reports lodged by Option One Construction’s liquidator, Mr Con Kokkinos of Worrells Solvency and Forensic Accountants, and Ultro Construction’s liquidator Mr Peter Malone of CRS Insolvency Services.
Mr Kokkinos and Mr Malone were assisted to prepare their reports after ASIC approved a grant from the Assetless Administration Fund.
Mr Lynch is disqualified from managing corporations until 10 July 2026.
Mr Lynch has had 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.