Thursday 29 June 2006 06 – LAWFUEL – Law News Network – The Australian Securities and Investments Commission (ASIC) has disqualified two company directors in New South Wales from managing corporations following their involvement in failed companies. ASIC has banned Certified Practising Accountant, Mr Craig West, of Oatley, for four years and Ms Jill Lynette Graham, of Glenwood, for two years. Mr Craig West
A self-described specialist in business structuring, Mr West was banned after an investigation into his involvement with failed companies, AllState Partners Pty Ltd, AllState Accounting & Taxation Services Pty Ltd, and AllState Business Solutions Pty Ltd. All three companies provided accountancy and taxation services and were wound up owing in excess of $3,000,000.
Creditors received no more than 10 cents in the dollar which included statutory liabilities such as superannuation on behalf of employees. ASIC found Mr West had allowed the companies to trade while insolvent and had failed to act with due care and diligence.
In determining an appropriate banning period for Mr West, ASIC expressed concern over his apparent lack of commercial morality and appreciation for the considerable duties and obligations of a company director. Ms Jill Lynette Graham Ms Graham was banned following an ASIC investigation into her involvement in four failed building excavation companies, Liquid Gas Installations Pty Ltd, Richdish Pty Ltd, R.O.S. Enterprises Pty Ltd, and Starlion Pty Ltd.
These companies were wound up owing in excess of $730,000 and were unable to pay creditors more than 50 cents in the dollar. ASIC found that Ms Graham had breached the Corporations Act by not maintaining proper books and records and failing to exercise her powers and duties as director of both companies with reasonable care and due diligence. ‘Company officers have important responsibilities to uphold and must not disregard their duties and obligations,’ ASIC’s Executive Director of Consumer Protection, Mr Greg Tanzer said.
‘Accountants, like Mr West, should know better. If they purport to specialise in business services, then they should practice what they preach or risk incurring ASIC’s regulatory action,’ Mr Tanzer said. Ms Graham and Mr West have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. For further information contact: Greg Tanzer Executive Director, Consumer Protection Telephone: 07 3867 4704 Mobile: 0411 549 144 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310