Between January 2010 and March 2010, ASIC disqualified six directors from managing corporations following their involvement in failed companies.

Of these disqualified directors, three were from Victoria, two were from Queensland and one was from Western Australia.

The disqualifications are a result of ASIC’s ongoing commitment to removing directors from managing companies after they have failed to fulfil their responsibilities relating to the proper running of the company, or after the company had been placed in external administration.

The actions taken by ASIC serve to protect future creditors, investors and employees who may otherwise be involved with a director who has a history of being involved in failed companies.

Three of the disqualifications resulted from the receipt of supplementary reports after further investigations were conducted by liquidators who had received funding through the Assetless Administration Fund (AA Fund).

The AA Fund was established to assist liquidators to carry out more detailed investigations into the circumstances of a company failure and to report, where appropriate, director misconduct to ASIC.

Details of the directors banned by ASIC between Jaunary 2010 and March 2010 are provided in the attachment to this advisory.

All the directors who were banned were afforded the opportunity to lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.

Further details are available at ASIC.