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ASIC disqualifies former building and construction industry director

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Christopher Hopkinson, of Calamvale, Queensland, has been disqualified from managing corporations for four years due to his involvement in four failed companies.

Mr Hopkinson was a director of four companies which entered liquidation between 2016 and 2020:

  • Enco Projects Pty Ltd (ACN 156 174 319);
  • Enco Project Services Pty Ltd (ACN 163 681 712);
  • Construction Industries Precast Pty Ltd (ACN 606 157 788); and
  • Specialised Workforce Group Pty Ltd (ACN 602 805 354).

Enco Projects, Construction Industries Precast, and Enco Project Services were in the building and construction industry. Specialised Workforce Group provided labour hire to the related companies.

ASIC found that Mr Hopkinson:

  • failed to ensure Enco Projects, Enco Project Services and Specialised Workforce Group complied with their Australian Taxation Office (ATO) obligations;
  • allowed Enco Project Services to make payments to related parties avoiding its ATO liabilities;
  • gave an advantage to himself, related entities and his son to the detriment of the creditors of Enco Projects and Enco Project Services;
  • failed to ensure Enco Projects and Enco Project Services correctly recorded the company’s financial position;
  • failed to ensure Specialised Workforce Group properly billed its commercial services to related parties resulting in insufficient funds to cover the company expenses; and
  • allowed Enco Projects and Enco Project Services to trade whilst insolvent.

The total amount owed to creditors across all four companies is estimated to be more than $1.982 million, of which approximately $825,911 is owed to the ATO.

In making its decision to disqualify Mr Hopkinson, ASIC relied on reports lodged by Mr Geoffrey Davis and Mr John Morgan of BCR Advisory for Enco Project Services and Enco Projects, and Mr Chris Cook and Mr Michael Griffin of Worrells Solvency and Forensic Accountants for Construction Industries Precast . ASIC assisted the liquidators in preparing the supplementary reports by providing funding from the Assetless Administration Fund.

Mr Hopkinson is disqualified from managing corporations until 19 January 2026.

Mr Hopkinson has the right to seek a review of ASIC’s decision before the Administrative Appeals Tribunal.

Background

Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies that were wound up and a liquidator provides a report to ASIC about each 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.

Regulator Information

Abbreviation: ASIC
Jurisdiction: Australia

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