Accounting discrepancies feature in double director disqualification
A Queensland duo have been disqualified from managing corporations for up to four years following accounting discrepancies, including engaging in conduct amounting to illegal phoenix activity.
John Thomas Shannon of Dalby, Queensland, and his son Jason Thomas Shannon of Oakey, Queensland, have been disqualified from managing corporations for three and half and four years, respectively.
Their disqualification follows the appointment of liquidators to five companies they managed: Darling Downs Express Transport Pty Ltd, Line Haul and Bulk Pty Ltd, BTK Communications Pty Ltd, Darling Downs Express Transport Courier Services Pty Ltd and Darling Downs Express Transport Employment Services Pty Ltd.
ASIC made the decision to disqualify both men under Section 206F of the Corporations Act, based on reports lodged by liquidators showing that they had failed to discharge their director duties.
ASIC was concerned that the pair accrued large debts owed to the ATO, WorkCover Queensland and unsecured creditors, with liquidators reporting that the total amount owed to creditors exceeded $4.15 million across all five companies.
Liquidators also found that both men failed to observe requirements to lodge documents with the ATO, failed to ensure the companies complied with their obligations to keep written financial records and engaged in conduct amounting to illegal phoenix activity.
The corporate regulator has determined that Mr John Shannon is disqualified from managing corporations from 8 December 2017 to 7 July 2021, while Mr Jason Shannon is disqualified from managing corporations from 18 December 2017 to 17 December 2021.