Director disqualified for failure of 21 companies: ASIC
A NSW director owing over $21 million to the Tax Office has been disqualified by the corporate regulator for five years.
ASIC announced it had disqualified Constandinos Ganatzos for a maximum period of five years due to his involvement in the failure of 21 companies.
The regulator said the 21 companies owed a combined total of $71,144,235 to unsecured creditors, which included $21,727,914 to the ATO, $1,285,894 to the Office of State Revenue and $1,287,138 for workers compensation debt.
During the disqualification, ASIC found Ganatzos did not fully understand his duties as a director which led to his failure to discharge his required duties.
Duties Ganatzos failed to comply with included:
· Agreement to act as a director of five companies but failed to participate in their management
· Failed to ensure that four companies complied with their obligation to lodge BAS, income tax returns and annual payment summary statements with the ATO
· Allowed a company he directed, Seville Optimised Solutions, to trade while it was insolvent
· Failed to ensure that three companies maintained adequate financial records
· Failed to assist the liquidator after their appointment by not delivering books and records, as well as not completing an RATA for a company he directed.
The failed companies directed by Ganatzos operated across sectors such as payroll, financial insurance services, fashion and beauty, hospitality, manufacturing and transport.
However, Ganatzos directed a substantial number of failed companies within the construction and labour-hire business sectors.
Construction sector businesses included Capitol Property Services, DK North, AC.N. 616 870 627, Newcastle Building Manpower, Newcastle Tiling and Bathrooms, Kas Sussex and Palisade Kingsway.
Labour-hire businesses included Rio Hire Systems, Project Service Holdings, Statewide Manpower Solutions, Premier Holdings Group, Seville Optimised Solutions and Grace Management Holdings.
The action was taken against Ganatzos based on supplementary reports lodged by liquidators.
Grahame Ward from Mackay Goodwin, Liam Bailey from O’Brien Palmer, Thomas James Dawson from Small Business Restructuring Specialists and Jason Tang from KPT Restructuring were the liquidators involved in the disqualification.
ASIC said Ganatzos was disqualified under section 206F of the Corporations Act and was disqualified from managing corporations until 21 October 2029.
Ganatzos would have the right to seek a review of the disqualification decision by the Administrative Appeals Tribunal, ASIC said.
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