Region father, son banned from managing companies
A FATHER and son who ran Darling Downs-based transport businesses that failed and left $4 million owing have been slapped with bans on managing corporations.
The Australian Securities and Investments Commission (ASIC) yesterday said the bans on John Thomas Shannon of Dalby and son Jason Thomas Shannon of Oakey came after concerns both had been involved in illegal phoenix activity and accrued large debts to creditors, including the Australian Taxation Office.
Illegal phoenix activity involves the intentional transfer of assets from an indebted company to a new company to avoid paying creditors, tax or employee entitlements.
Their five companies, which included Darling Downs Express Transport, Line Haul and Bulk, and BTK Communications, collapsed between 2012 and 2016, according to company records.
Liquidators reported that the total amount owed to creditors exceeded $4.15 million across all five companies.
ASIC was also concerned both men had failed in their director duties, including concerns about illegal phoenix activity, failing to keep written financial records and accruing large debts with the ATO or WorkCover Queensland.
John Shannon is barred for 3½ years, and Jason for four years.
The reports prepared by the liquidators of Line Haul and Bulk Pty Ltd, Darling Downs Express Transport Courier Services Pty Ltd and BTK Communications Pty Ltd were funded from the Assetless Administration Fund.