During the period 1 January to 31 March 2024, ASIC has banned four directors from managing corporations following their role in the collapse of multiple small proprietary companies leaving many creditors unpaid including the Australian Taxation Office (ATO), employees and other small business creditors. Some of the directors had also engaged in illegal phoenix activity and used company funds to make payments to related parties for no commercial reason.

The failure of company directors to pay the ATO, employee entitlements or other creditors puts them at an unfair competitive advantage over other small proprietary companies.

Through enforcement action, ASIC demonstrates there are consequences for the mismanagement of small and large companies, which can affect small businesses because their debts remain outstanding and often lead to those businesses having to close their doors. ASIC will take action against individual directors to protect the wider public, employees and other businesses against the future mismanagement of companies.

Rukshan (Rick) Wickramanayake

Textiles industry director Rukshan (Rick) Wickramanayake of Penrith, NSW was disqualified from managing corporations for one year due to his poor management which led to the failure of three small proprietary companies, which owed a combined total of $1,487,009.18 to unsecured creditors, including the ATO. ASIC disqualified Mr Wickramanayake until 5 February 2025.

Shane Dunstan

Engineering and mining services director Shane Andrew James Dunstan of Brisbane, QLD was disqualified from managing corporations for two years due to his involvement in the failure of four small proprietary companies, which owed a combined total of $4,885,034 to over 50 unsecured creditors, including the ATO and $52,043 for unpaid wages and employee leave entitlements, and $23,173 owed to Fair Entitlements Guarantee (FEG) for payments made to former employees.

ASIC disqualified Mr Dunstan until 11 February 2026.

Alaa El Hassan

ASIC previously issued a media release regarding the disqualification of former hospitality, construction, cleaning and electrical industries sector director Alaa El Hassan for the maximum period of five years due to his involvement in the failure of seven small proprietary companies, which owed a combined total of $3,723,402.16 to unsecured creditors including the ATO, $547,346 owed to Revenue NSW and $23,246 owed to former employees including for unpaid superannuation: 24-035MR ASIC disqualifies NSW director for maximum five years after failure of seven companies.

ASIC disqualified Mr El Hassan until 14 February 2029. 

Dane Stojic

Construction industry director Dane Stojic of South Coogee, NSW was disqualified from managing corporations for a period of four years due to his involvement in the failure of eight small proprietary companies owed a combined total of $33,357,590.28 to unsecured creditors, including $13,768,044.14 owing to the ATO, $1,315,512.69 to the Workers Compensation Nominal Insurer and $1,794,824.30 to the Office of State Revenue.

ASIC disqualified Mr Stojic until 26 February 2028. 

Assetless Administration Fund

In disqualifying these directors, ASIC relied on supplementary reports lodged by the following liquidators after ASIC approved funding from the Assetless Administration Fund:

• Mr Michael Jones of Jones Partners was the appointed liquidator of one of Mr Wickramanayake’s companies
• Mr Gavin Morton of Morton + Lee Insolvency was the liquidator of Mr Dunstan’s companies
• Mr David Hurst of Mackay Goodwin and Mr Daniel Frisken of O’Brien Palmer were the liquidators of Mr Hassan’s companies
• Mr Ian Niccol of Ashton Chace Group and Mr Shumit Banerjee (Westburn Advisory) and Mr Domenic Calabretta (Mackay Goodwin) were the liquidators ASIC relied on for supplementary reports of Mr Stojic’s companies.

Background

Section 206F of the Corporations Act 2001 allows ASIC to disqualify a person from managing corporations for a maximum period of 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 each of the company’s inability to pay its debts.

In deciding whether a director should be banned from managing corporations, ASIC relies on information provided by registered liquidators in initial statutory reports and supplementary reports and on convictions resulting from ASIC’s request assistance for external administration (RAEA) program. The RAEA registered liquidators to request assistance from ASIC in circumstances when directors, officers and individuals related to a company in external administration fail to comply their legal obligation to assist liquidators.

Directors can seek a review of ASIC’s decision by the Administrative Appeals Tribunal. To date, ASIC has not been advised that any of the above directors are reviewing their banning order.

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
• practising in the financial services or credit industry.

Get trusted professional advice

Company directors should obtain trusted professional advice if they are uncertain about their legal obligations or concerns about the company’s ability to continue to trade and pay their debts. Find out more on professional advice.