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Canberra director disqualified for two years by ASIC for hands-off approach to management, lack of care and diligence.
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Property developer cops ban for 5 failed companies owing $12m
03 November 2023
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9 minute read
ASIC has disqualified an ACT property developer for two years for his role in five companies which failed owing almost $12 million.
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Paul Kenneth Nimal Hamilton of Coombs was a director from December 2019 and August 2021 of Lifestyle Home Account (Lifestyle Homes), 3 Property Group 13 (3PG13), Be Athletic Canberra (Be Athletic); ACN 601 334 749 formerly Tiger Property Group (TPG) and ACN 606 934 874 formerly 3 Property Group 2 (3PG2).
All were involved in the development of commercial and residential properties in Canberra but collapsed owing a combined total of $11,867,702 to unsecured creditors, including $5,455,596 to ATO and $19,652 owed to the ACT Office of Revenue.
ASIC found that Mr Hamilton showed a lack of care and diligence when he:
- Agreed to act as a director of the five companies to allow the former directors to maintain their credit scores and continue to be directors of other companies in the group.
- Failed to ensure 3PG2 got its tax lodgements up to date and failed to take steps to ensure the tax debts owed by Lifestyle Homes, Be Athletic, TPG and 3PG13 were paid.
- Failed to participate in the management of Lifestyle Homes, Be Athletic, TPG, 3PG13 and 3PG2.
In disqualifying Mr Hamilton, ASIC relied on supplementary reports lodged by liquidator, Mr Stephen Hundy of Worrells and Mr Jason Tang of Cor Cordis.
ASIC approved funding from the Assetless Administration Fund to assist Mr Hundy and Mr Tang in the preparation of the reports.
Mr Hamilton is disqualified from managing corporations until 23 October 2025.
Mr Hamilton has 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 seven years, 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 SMSFs or practising in the financial services or credit industry.
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