ASIC has disqualified Keith Aaron Richard Kimmins of Forrest Reefs, NSW, from managing companies for three years and eight months due to his involvement in the bankruptcy of three companies.
Between 2009 and 2019, Mr. Kimmins served as a director of three companies:
- 2K Container Services Pty Ltd (ACN 136 721 376);
- 2K Labor Services Pty Ltd (ACN 603 411 847); and
- Australian Labor Solutions (NSW) Pty Ltd (ACN 610 669 773).
2K Container Services was in the business of providing freight and logistics services. 2K Labor Services and Australian Labor Solutions provided labor to 2K Container Services.
ASIC found that Mr. Kimmins lacked the basic skills and knowledge required to run a business in that he:
- failed to ensure companies kept proper financial records;
- failed to keep informed of the financial condition and performance of the companies;
- failed to ensure companies complied with their tax obligations;
- allowed 2K Container Services and Australian Labor Solutions to trade while insolvent;
- has authorized the use of company funds for its benefit and that of related parties;
- engaged in illegal phoenix activity by transferring the business from 2K Labor Services to Australian Labor Solutions and then to 2K Container Services.
At the time of ASIC’s decision, the three companies owed a combined total of $4,016,588 to creditors (including related parties), including $2,270,592 owed to the ATO.
To disqualify Mr. Kimmins, ASIC relied on additional reports filed by 2K Container Services and 2K Labor Services liquidator Adam Shepard of Setter Shepard and Australian Labor Solutions liquidator Louisa Sijabat of Vincents Chartered Accountants. ASIC assisted Ms. Sijabat in preparing her report by providing funding from the Non-Asset Trust Fund.
Mr. Kimmins is barred from managing the companies until October 17, 2025.
Mr. Kimmins has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Section 206F of the Companies Act allows ASIC to disqualify a person from managing companies for up to five years if, during a seven-year period, the person was an officer of two companies or more, and these companies have been liquidated and a liquidator provides a report to ASIC on each of the company’s failures to pay its debts.
ASIC also maintains a Banned and Disqualified Persons Registry which provides information on who has been disqualified:
- participation in the management of a company;
- audit of self-managed pension funds (SMSF); Where
- operating in the financial services or credit sector.
More information about ASIC’s work in combating illegal Phoenix activity can be found here.
ASIC is a member of the Phoenix Task Force, which includes federal, state, and territorial government agencies working together to combat illegal Phoenix activity. The Phoenix Taskforce’s goal is to provide a whole-of-government approach to identifying, disrupting, and prosecuting those who engage in or facilitate illegal phoenix activities.
Suspected phoenix activity can be reported to ASIC or ATO by calling 1800 060 062, online