A tyre company director has been disqualified from managing corporations for five years after engaging in illegal phoenix activity.
ASIC disqualified Robert John Walker of Rosetta, Tasmania, from managing companies for five years for his involvement in four failed companies.
Between 2014 and 2018, Mr Walker was a director of Tazzy Tyres Wholesale, Tazzy Tyres Accessories, Tazzy Tyres Retail and Tazzy Tyres Pty Ltd. The companies provided retail sales of, and services related to tyres.
ASIC found that Mr Walker breached his director’s duties as a result of his involvement in phoenix activity over several years when he transferred the assets of indebted companies to other companies for no consideration, namely Tazzy Tyres Accessories and Tazzy Tyres.
He also failed to maintain proper financial records for all four companies.
“At the time of ASIC’s decision, the four companies owed unsecured creditors $1,944,418 including $855,121 owed to the ATO,” ASIC said.
“In disqualifying Mr Walker, ASIC relied on supplementary reports lodged by the liquidator of the four companies, Barry Hamilton of Barry Hamilton and Associates.”
Mr Walker is disqualified from managing corporations until 2 May 2027.
Mr Walker has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
The regulator also disqualified construction industry director Tony Alexzander of Macgregor, Queensland, from managing corporations for three years after his involvement in four failed companies.
Volcanic Constructions, TB Labour Hire and Total Blox were involved in the construction industry. Freenay provided business and personal services.
ASIC found that Mr Alexzander failed to exercise his powers and discharge his duties with the requisite degree of care and diligence by allowing Volcanic Constructions and Total Blox Labour Hire to fail, with debts owed to unsecured creditors, including the ATO.
He also allowed Total Blox to continue trading while insolvent and failed to ensure Freenay and Total Blox maintained adequate books, including lodgment of business activity statements and taxation returns with the ATO.
The total amount owed to unsecured creditors, including the ATO, is in excess of $8.8 million.
“In disqualifying Mr Alexzander, ASIC relied on supplementary reports lodged by Total Blox’s liquidator, David Hambleton of Rodgers Reidy, Brisbane,” ASIC said.
“ASIC assisted Mr Hambleton to prepare his report by providing funding from the Assetless Administration Fund.”
Mr Alexzander is disqualified from managing corporations until 20 April 2025. Mr Alexzander has also been an undischarged bankrupt since 20 October 2021.
Mr Alexzander has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.