ASIC has disqualified Mohamed Aly Ismail Khalaf of Condell Park, NSW, from managing corporations for five years due to his involvement in the failure of three companies.

Between 29 July 2013 and 16 September 2019, Mr Khalaf was an officer of three companies that entered liquidation:

• Qld Protection Security Pty Ltd (ACN 165 047 110);
• Power Protection Services Pty Limited (ACN 624 207 496); and 
• Insight Cleaning Solutions Pty Limited (ACN 609 721 646).

The companies were involved in providing security operator services and cleaning services.

ASIC found that Mr Khalaf acted improperly and failed to meet his obligations as an officer when he:

• Utilised his authority as signatory of the companies’ bank accounts to make frequent transfers between related entities with no documentation to verify that they were for a genuine business purpose;
• Failed to lodge statutory Business Activity Statements and income tax returns or pay statutory entitlements in relation to the companies; and
• Failed to maintain books and records to allow for accurate financial statements to be prepared for the companies.

At the time of ASIC’s decision, the three companies owed a combined estimated total of $738,888.90 to unsecured creditors including approximately $724,580.90 owed to the Australian Tax Office and other statutory creditors.

In disqualifying Mr Khalaf, ASIC relied on supplementary reports lodged by liquidator, Mr Nicarson Natkunarajah, of insolvency firm Roger & Carson.

ASIC assisted Mr Natkunarajah to prepare his reports by providing funding from the Assetless Administration Fund.

Mr Khalaf is disqualified from managing corporations until 01 November 2028.

Mr Khalaf has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.

Background

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
• practicing in the financial services or credit industry.