Phillip Anthony Royce, of Jan Juc, Victoria, has been disqualified from managing corporations for a period of two years and six months for his involvement in three failed companies.
Mr Royce was a director of three companies that went into liquidation between 2015 and 2019:
- Showerline (Aust) Pty Ltd A.C.N. 074 117 098 (Showerline);
- Vehicle Modification Specialists Pty Ltd A.C.N. 134 638 761 (VMS); and
- Gracro Industries Pty Ltd A.C.N. 006 734 907 (Gracro).
Showerline and Gracro were involved in the manufacturing and selling of bathroom and/or plumbing goods. VMS was involved in manufacturing and the modification of vehicles.
ASIC’s investigation found that Mr Royce, in his management of Showerline and VMS:
- Failed to take reasonable steps to inform himself about, monitor and oversee the companies’ financial affairs;
- Disregarded taxation obligations;
- Breached his duty to act with due care and diligence and his record keeping obligations; and
- Showed a persistent inability or unwillingness to comply with his obligations as a director.
At the time of ASIC’s decision, the total amount owed to creditors across all three companies was approximately $1,659,497.89, including $951,653.80 owed to the Australian Taxation Office.
In making the decision to disqualify Mr Royce, ASIC relied on supplementary reports lodged by the liquidators of Showerline and VMS. ASIC assisted VMS’s liquidator to prepare its report by providing funding from the Assetless Administration Fund.
Mr Royce is disqualified from managing corporations until 22 March 2024.
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 the liquidators lodge reports with ASIC about each company’s inability to pay its debts or alleges misconduct.
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 self-managed superannuation funds (SMSFs); or
- practicing in the financial services or 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.