ASIC disqualifies Victorian director for four years

ASIC has disqualified Matthew John Reid, from Brown Hill, Victoria, from managing corporations for four years due to his involvement in the failure of three companies.

Between 27 June 2017 to 18 October 2021, Mr Reid was a director of:

BMT Contracting Pty Ltd ACN 620 035 565;
BMT Communications Pty Ltd ACN 620 036 839; and
BMT Group Services Pty Ltd ACN 627 892 488.
Prior to entering liquidation, the companies were involved in the installation, maintenance, and servicing of fibre optic networks within the telecommunication industry.

ASIC found that Mr Reid failed to meet his obligations as a director and misused his position when he:

failed to ensure that BMT Group Services complied with its statutory obligations, including the lodgement of income tax returns;
allowed BMT Group Services to enter into an unsecured loan with him to the value of $497,351 as at 30 June 2021, in circumstances where no formal loan documents were executed and at a point where BMT Group Services was experiencing financial difficulty from 30 June 2019 onwards;
caused BMT Communications to pay creditors and make re-payments on behalf of BMT Group Services and BMT Contracting;
allowed BMT Group Services to continue incurring debts when it was insolvent; and
failed to ensure that BMT Group Services and BMT Communication complied with its obligation to keep true and accurate financial records.
At the time of the decision, the companies owed a combined total of $1,167,251.49 to unsecured creditors, including $274,985.32 to the Australian Taxation Office.

In disqualifying Mr Reid, ASIC relied on supplementary reports lodged by BMT Group Services liquidator, Con Kokkinos of Worrells and BMT Communications liquidator, Justin Howlett of SMB Advisory. ASIC assisted Mr Howlett and Mr Kokkinos to provide a supplementary report by approving an application for funding from the Assetless Administration Fund.

Mr Reid is disqualified from managing corporations until 28 June 2027.

Mr Reid has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.

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