Kevin Humphries of Thornlands, Queensland, has been disqualified from managing corporations for the maximum period of five years.
Between 20 July 2017 and 11 December 2020, Mr Humphries was a director of three companies involved in the recruitment and labour hire industries. The three companies failed within the last three years:
- TMS National Pty Ltd ACN 620 569 940 (TMS);
- Engineering Staffing Solutions Pty Ltd ACN 620 577 095 (ESS); and
- National Workforce Solutions Pty Ltd ACN 620 573 006 (NWS).
In making its decision, ASIC found that Mr Humphries:
- Failed to take steps to ensure that the statutory liabilities of TMS, ESS and NWS were paid;
- In relation to TMS and ESS, used funds sourced from the collection of GST and PAYG withholding tax to meet liabilities other than those of the ATO; and
- Failed to ensure ESS either remitted sufficient funds to NWS for labour hire services that it provided to enable NWS to meet its obligations or pay those obligations on behalf of NWS.
ASIC found that Mr Humphries’ conduct fell significantly below the standard expected of a director. It also found his conduct was of particular concern because it shows a pattern of misuse of the corporate structure and a lack of understanding or disregard of statutory obligations.
Once the outstanding ATO lodgements were lodged by the liquidators, the three companies ultimately owed creditors approximately $6.5 million.
In making its decision, ASIC relied on supplementary reports lodged by the first liquidator of the three companies.
Mr Humphries’ disqualification extends until 10 December 2025.
Background
Section 206F of the Corporations Act gives ASIC the power to 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 or alleges misconduct.
ASIC also 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.
