The Australian Securities and Investments Commission (ASIC) has banned the former director of software consulting business Mendicant from managing other corporations for five years.
The agency found Mendicant director Kieran Morrissey failed to ensure that another business he was operating, web design and development services company Jack Marlow, complied with its tax obligations. He is disqualified from managing corporations until 12 August 2027.
Morrissey's two companies owed a combined total of $407,409 to unsecured creditors, including $15,430.48 owing to the Australian Taxation Office, according to the corporate regulator.
ASIC added that Morrisey either “failed to keep adequate books and records for Jack Marlow that explained why that company's intellectual property and clients were transferred to another company, or deliberately misused his position as a director by transferring intellectual property and clients to another company where Jack Marlow did not receive proper consideration.”
The agency said the decision was based on supplementary reports lodged by Jack Harlow's liquidator, Anthony Cant of Romanis Cant.
The regulator added the decision also factored in Morrissey's previous conviction on 26 February 2021 for failing to submit adequate information to Mendicant's liquidator, Paul Langdon of Vince & Associates.
ASIC said Morrissey was separately prosecuted and convicted for failing to submit a report on company activities and property (ROCAP) of Mendicant and for failing to provide Mendicant’s books to Langdon.
Langdon reported the non-compliance to ASIC through its external administrator assistance program while the company was being wound up.
The program assists liquidators when company officers in external administration fail to comply with obligations to help liquidators.
Through the Corporations Act, ASIC can 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 that were wound up and the liquidators lodge reports with ASIC about each company’s inability to pay its debts.
ASIC also maintains a banned and disqualified persons register, which includes those banned from running corporations, auditing self-managed superannuation funds and those practising in the financial services or credit industry.
Morrissey is still able to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
