Australia financial regulator ASIC has announced that Collaroy director Mark Frederic Byers, has been banned by ASIC from managing companies for the maximum of five years for his conduct in the management of four failed companies.
Mr Byer’s ban follows the appointment of liquidators to four fashion apparel companies he managed: Mentmore Pty Ltd, 095 987 214 Pty Limited (formerly known as Bleach Pty Limited), 135 580 013 Pty Limited (formerly known as Ksubi Copyright Pty Ltd) and 140 672 797 Pty Limited (formerly known as Ksubi Pty Limited).
As a result of information contained in reports provided by the liquidators of the failed companies, ASIC was concerned Mr Byers had failed to prevent insolvent trading by two of the companies and failed to ensure they paid their taxes, failed to discharge his duties as a director and had engaged in illegal ‘phoenix activity’ – an activity which involves transferring the assets of an indebted company into a new company, while leaving the initial company with insufficient assets to pay creditors.
ASIC Commissioner, Greg Tanzer, said:
ASIC will ensure that directors who are involved in illegal phoenix activity and fail to appropriately discharge their duties will be removed from the management of companies.
Mr Byers has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
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, 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 public register of banned and disqualified persons that provides information about people who have been:
- disqualified from involvement in the management of a corporation,
- disqualified from auditing self-managed superannuation funds (SMSFs), or
- banned from practising in the financial services of credit industry.
Mr Byers’ five year ban took effect from 29 July 2016.