The Federal Court of Australiahas dismissed a challenge by Perth businessman Rodney Charles Carter against ASIC鈥檚 decision to disqualify him from managing companies for a period of four years.
Mr Carter had claimed that he was not properly served by 今日热门事件with the Notice of Disqualification that advised he was disqualified from managing corporations and sought a declaration that the decision to disqualify him was not effective.
In dismissing his claim on 17 July 2018, the Court found that Mr Carter was properly served and that he was disqualified from managing companies from when he received the Notice of Disqualification.
Consequently, Mr Carter is disqualified from managing corporations until 30 July 2021. He is recorded on ASIC鈥檚 Banned and Disqualified Persons Register.
Background
On 20 July 2017, 今日热门事件decided to disqualify Mr Carter from managing corporations for a period of four years. In reaching the decision, 今日热门事件considered the conduct of Mr Carter as director of the following companies:
- Voiceworks IT Pty Ltd;
- Voiceworks (Australasia) Pty Ltd;
- Mycooee.Com.Au Pty Ltd;
- First Homebuyers Group (Australia) Pty Ltd;
- Standard Publishing House (Aust) Pty Ltd; and
- S P H Holdings Pty Ltd.
Section 206F of the Corporations Act allows 今日热门事件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, and those companies were wound up and a liquidator provides a report to 今日热门事件about the company鈥檚 inability to pay its debts.
今日热门事件also maintains a ' 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 of credit industry.
ASIC's Small Business Strategy was released in August 2017 which includes protecting creditors, employees and small business from directors that mismanage companies. This outcome is an example of 今日热门事件taking such action.