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Two directors have been banned from managing corporations for their roles in the failure of various companies, after each took on major debts and continued to trade while insolvent.
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ASIC bans directors over failed companies
01 September 2021
•
9 minute read
ASIC has disqualified Mohamad Elriche of Bass Hill, NSW, and Peter Rozsy of North Perth, Western Australia, who each face bans from managing corporations for five years and three years respectively.
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The regulator found Mr Elriche had failed to understand his role as director and exercise his duties with care and diligence while at the helm of Bob Construction, PS Scaffold and Precise Structure, three construction companies based in NSW.
He has been disqualified from managing corporations until 12 August 2026.
Mr Elriche was also found to have failed to keep adequate financial records for Bob Construction and ensure that all books in his possession were offered up to the liquidator, in addition to failing to prevent Bob Construction and Precise Structure from incurring debts.
Both companies racked up debts totalling more than $3.9 million between them, when the companies were insolvent, and should have been known to be.
At the time of ASIC’s decision, all three of Mr Elriche’s companies owed creditors more than $9 million, of which $2.5 million is owed to the ATO.
ASIC relied upon the supplementary liquidation reports to make its decision.
Daniel John Frisken of O'Brien Palmer Insolvency & Business Advisory lodged the report for Bob Construction, while Shumit Banerjee and Jason Lloyd Porter of SV Partners were assigned joint liquidators of both Precise Structure and PS Scaffold.
Separately, Mr Roszy’s disqualification relates to the role he played in the failure of nine recruitment companies – Natrec, 360Recruitment01, 360Recruitment02, 360Recruitment03, 360Recruitment04, 360Recruitment05, 360Recruitment06, 360Recruitment07, and 360Recruitment08 – all based in Western Australia.
He was found to have failed to pay taxes to the ATO, and prevent 360Recruitment01 and 360Recruitment03 from trading while insolvent.
Mr Rozsy was also found to have failed to properly manage — and maintain proper books and records for – 360Recruitment01.
The total amount Mr Rozsy owed to unsecured creditors at the time of the regulator’s decision was $2.02 million, of which $602,434 is owed to ATO.
ASIC relied upon supplementary reports lodged by Gess Rambaldi of Pitcher Partners as liquidator of Natrec, Brent Morgan of Rodgers Reidy as liquidator of 360Recruitment01, and Richard Lawrence of Hall Chadwick as liquidator of 360Recruitment03 to make its decision.
ASIC provided the liquidator of 360Recruitment03 with funding from the Assetless Administration Fund.
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