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ASIC serves up 4-year ban to failed director

A former director who failed to ensure business tax debts were paid for has now been banned from managing companies for four years after being involved with three failed companies.

Business Reporter 30 June 2020
— 1 minute read

ASIC has now banned Sean Joseph O’Reilly of Hemmant, Queensland, from managing companies for four years due to his involvement in three failed companies.

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Mr O’Reilly was a former director of three companies in the building and construction industry: Specialised Workforce Group Pty Ltd, Construction Industries Precast Pty Ltd and LK Construction Australia Pty Ltd.

The total amount owed by the companies to creditors was in excess of $2.1 million.

An investigation by the corporate regulator found that Mr O’Reilly failed to exercise his duties as a director with due care and diligence, and had failed to ensure that Specialised Workforce Group and LK Construction Australia paid their tax debts and workover premiums.

Mr O’Reilly also failed to keep complete and accurate written financial records, and failed to prevent Construction Industries Precast and LK Construction Australia from incurring debts when they were insolvent.

He was also found to have engaged in illegal phoenix activity by transferring Construction Industries Precast’s business to another company and continued to operate the business.

In making its decision to disqualify Mr O’Reilly, ASIC relied on supplementary reports lodged by Mr Christopher Cook and Mr Rajendra Khatri of Worrells Solvency and Forensic Accountants who were appointed liquidators of Construction Industries Precast and LK Construction.

Mr O’Reilly will remain banned until 13 May 2024.

ASIC serves up 4-year ban to failed director
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