Noel Ryan of Queanbeyan, NSW, has been disqualified from managing companies for the maximum period of five years.
Mr Ryan was disqualified for his role in the failure of three companies:
- The Three Ryan Brothers Pty Ltd ACN 143 747 997 (Three Ryan Brothers);
- To The Top Scaffolding Pty Ltd ACN 144 884 659 (To The Top); and
- Rhino Scaffolding Pty Ltd Pty Ltd ACN 627 940 792 (Rhino).
The companies were involved in labour hire services for scaffolding businesses in the building and construction industry between 2010 and 2019.
ASIC found that Mr Ryan:
- failed to exercise his powers and discharge his duties with due care and diligence by using the cash of each company to favour others over statutory creditors; and
- failed to exercise his powers and discharge his duties with due care and diligence by engaging in a pattern of underquoting for work.
The companies collapsed owing creditors $925,729.
On 8 January 2014, Michael Edward Slaven was appointed the liquidator of To The Top; on 10 January 2014, Mr Slaven was appointed the liquidator of Three Ryan Brothers; and on 18 April 2019, Jonathon Colbran of RSM Australia was appointed the liquidator of Rhino.
In deciding to disqualify Mr Ryan, ASIC relied on reports lodged by the liquidators of the three failed companies. ASIC also assisted the liquidator of Rhino to prepare a supplementary report by providing funding from the Assetless Administration Fund.
Mr Ryan is disqualified until 30 November 2025.
Section 206F of the Corporations Act gives ASIC the power to disqualify a person from managing corporations for a maximum period five years if, within a seven-year period, 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 the company’s inability to pay its debts.
ASIC also 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 self-managed superannuation funds (SMSFs); or
- practising in the financial services of credit industry.
This news item was originally published by the Australian Securities and Investments Commission (ASIC AU). For more information, please see the Source Link.