ASIC has disqualified former director Kieran Morrissey of Collingwood, Victoria, from managing corporations for five years after his involvement in two failed companies.
Between 2008 and 2022, Mr Morrissey was a director of two companies which entered liquidation:
- Jack Marlow Pty Ltd (ACN 134 590 186) (In liquidation) and
- Mendicant Labs Pty Ltd (ACN 160 964 027) (deregistered).
Jack Marlow primarily provided website design and development services while Mendicant operated a software consulting business.
ASIC found that Mr Morrissey failed to ensure that Jack Marlow complied with its tax obligations.
ASIC also found that Mr 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
In making its decision, ASIC also factored in Mr Morrissey’s separate prosecution and conviction for failing to submit a report on company activities and property (ROCAP) of Mendicant and for failing to provide Mendicant’s books to the company’s liquidator.
At the time of ASIC’s decision, the two companies owed a combined total of $407,409 to unsecured creditors, including $15,430.48 owing to the ATO.
In disqualifying Mr Morrissey, ASIC relied upon supplementary reports lodged by Anthony Cant of Romanis Cant as liquidator of Jack Marlow.
Mr Morrissey is disqualified from managing corporations until 12 August 2027.
Mr Morrissey has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Background
Mr Morrissey was convicted on 26 February 2021 for failing to submit a ROCAP and failing to deliver company books and records to the liquidator of Mendicant.
These convictions followed requests made by the Paul Langdon of Vince & Associates as liquidator of Medicant to ASIC seeking assistance through the assistance program.
The program assists liquidators when company officers in external administration fail to comply with obligations to help liquidators.
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.
ASIC maintains a 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.
