The notion of family business has been put in a different light after a father and son duo were disqualified from managing companies after the failure of five businesses under their control.
Queensland man John Thomas Shannon, and his son Jason, were disqualified from holding directorships for 3.5 and four years respectively after ASIC alleged a number of breaches of director duties.
Corporate regulator ASIC said the pair had accrued large debts to the tax office and WorkCover Queensland, as well as unsecured creditors; failed to lodged documentation and maintain written financial records as required by the ATO, and also engaged in illegal phoenix activity.
In total, creditors were owed more than $4.15 million across all five of their transport and logistics companies.
The companies in question were BTK Communications, Darling Downs Express Transport Courier Services, Darling Downs Express Transport, Darling Downs Express Transport Employment Services as well as Line Haul and Bulk.
ASIC noted that an individual can be banned from managing a business for up to five years if, within a seven-year period, the person is an officer of two or more companies that fail and are unable to pay outstanding debts.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
Insolvency accountant asks: Have you paid your tax yet?
By John Papadopoulos
Ask the Experts: Does automation stack up financially?
By Christopher Overton
Opinion: How bad do things have to get?!
By Adam Zuchetti