Between April and June 2010, the ASIC disqualified 13 directors from managing corporations following their involvement in failed companies.

Of these disqualified directors, four were from New South Wales and three were from Victoria. Three directors from Western Australia, two from Queensland and one from the ACT were also disqualified.

ASIC’s latest actions bring the total number of disqualified directors to 70 individuals for the financial year ending 30 June 2010, for a total period of 225 years. This represents a significant increase in the number of disqualifications on the previous year and follows a sharp increase in insolvency activity during the global financial crisis.

‘ASIC is committed to targeting directors who have a history of being involved in failed companies. Disqualification removes their right to be involved in the management of a company and takes away the protection of limited liability. Disqualification action assists to protect future creditors, investors and employees who may otherwise become involved with these individuals’, said ASIC Commissioner, Dr Peter Boxall.

‘Members of the public can conduct a free search of ASIC’s Banned and Disqualified Persons register on our website.’

Seven of the 13 most recent 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). This fund was established to assist liquidators to undertake more detailed investigations into the circumstances of a company failure and to report, where appropriate, director misconduct to ASIC.

Further details are available at ASIC.