ASIC has disqualified Constandinos Ganatzos, of Brighton-Le-Sands, NSW, from managing corporations for the maximum period of five years due to his involvement in the failure of 21 companies.

At the time of ASIC’s decision, the 21 companies owed a combined total of $71,144,235 to unsecured creditors, including $21,727,914 owing to the Australian Taxation Office, $1,285,894 owing to the Office of State Revenue and $1,287,138 for workers compensation debt. The list of companies can be found below.

Between October 2016 and November 2021 Mr Ganatzos was the director of the following companies listed below.

Capitol Property Services, DK North, A.C.N. 616 870 627, Newcastle Building Manpower, Newcastle Tiling and Bathrooms, Kas Sussex and Palisade Kingsway operated in the construction industry.

Rio Hire Systems, Project Service Holdings, Statewide Manpower Solutions, Premier Holdings Group, Seville Optimised Solutions and Grace Management Holdings operated labour hire businesses.

TKT9M operated as a payroll service entity. ACN 144 496 042 operated in the financial and insurance services industry. Phalanga A and Phthia operated as agencies in the industries of photography, fashion and beauty. NSH East operated in the restaurant industry. Kerr Flowers operated in retail trade. MF069ESL operated as a timber joinery business. Southern Logistics operated in the transport, postal and warehousing industry.

ASIC found that Mr Ganatzos did not know or understand his duties as a director and completely failed to discharge those duties as he had:

• agreed to act as a director of five companies but did not participate in their management;
• failed to ensure that four companies complied with their obligation to lodge BAS, income tax returns and annual payment summary statements with the ATO;
• allowed Seville Optimised Solutions to trade while it was insolvent;
• failed to ensure that three companies maintained adequate financial records;
• failed to assist the liquidator after their appointment by not delivering up books and records and completing a RATA for the company C.N. 616 870 627 Pty Ltd.

In disqualifying Ms Ganatzos, ASIC relied on supplementary reports lodged by liquidators, Grahame Ward of Mackay Goodwin, Liam Bailey of O’Brien Palmer, Thomas James Dawson of Small Business Restructuring Specialists and Jason Tang of KPT Restructuring. ASIC assisted Mr Bailey and Mr Tang to prepare their reports by providing funding from the Assetless Administration Fund.

Mr Ganatzos is disqualified from managing corporations until 21 October 2029.

Mr Ganatzos 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.