ASIC has disqualified Alan MacDonald of Bankstown, New South Wales from managing corporations for the maximum period of five years due to his involvement in the failure of the following three companies:

1. Qwik Track Plumbing Pty Ltd ACN 153 132 408 (Qwik Track)
2. All Time Protection Pty Ltd ACN 631 039 177 (All Time Protection)
3. Thanos Protection Pty Ltd ACN 640 571 679 (Thanos Protection)

Qwik Track operated as a plumbing business. All Time Protection and Thanos Protection operated as security businesses.

At the time of ASIC’s decision, the three companies owed a combined total of $1.18 million to unsecured creditors, including more than $926,000 owed to the ATO.

In disqualifying Mr MacDonald, ASIC found he:

• failed to ensure Qwik Track and All Time Protection complied with their taxation and lodgement obligations, resulting in substantial unpaid ATO liabilities;
• failed to ensure Qwik Track and All Time Protection maintained adequate books and records;
• failed to assist the liquidator of Qwik Track by providing company books and records and a Report on Company Activities and Property (ROCAP);
• allowed Qwik Track to continue incurring debts when there were reasonable grounds to suspect it was insolvent;
• improperly used his position as a director of Qwik Track Plumbing as three vehicles registered in Qwik Track’s name were transferred out of the company for nil consideration and the liquidator identified $456,000 in voidable director related transactions;
• failed to act in good faith as a director of All Time Protection by withdrawing substantial company funds in circumstances where there are no books or records explaining the purpose of the withdrawals, whether legitimate or otherwise, and where the company had outstanding loans and ATO debts.
• engaged in illegal phoenix activity by transferring or allowing the transfer of Qwik Track’s business to another company while leaving substantial ATO debt behind.

In disqualifying Mr MacDonald, ASIC relied on supplementary reports lodged by Mr Michael Billingsly of Olvera Advisors, liquidator of Qwik Track and Mr Steven Staatz of Vincents, liquidator of All Time Protection. ASIC assisted Mr Billingsly and Mr Staatz to prepare their reports by providing funding from the Assetless Administration Fund.

Mr MacDonald is disqualified from managing corporations until 29 July 2031.

Mr MacDonald has the right to seek review of ASIC’s decision by the Administrative Review Tribunal.

Background

Section 206F of the Corporations Act 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 companies' inability to pay its debts.

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
• practicing in the financial services or credit industry.