Mohamad Elriche of Bass Hill, NSW, has been disqualified from managing corporations for the maximum period of five years for his involvement in three failed companies that operated in the construction industry.
Between 2017 and 2020, Mr Elriche was a director of three companies:
Bob Construction Pty Ltd ACN 621 274 913 (Bob Construction);
Precise Structure NSW Pty Ltd ACN 620 197 953 (Precise Structure); and
PS Scaffold Pty Ltd ACN 621 237 376 (PS Scaffold).
In making its decision, ASIC found that Mr Elriche failed to:
understand the role and exercise the duties of a director with due care and diligence in respect of Bob Construction and Precise Structure;
take all reasonable steps to comply with the obligation to keep written financial records in respect of Bob Construction;
ensure that all books in his possession were delivered to the liquidator in respect of Bob Construction; and
prevent Bob Construction and Precise Structure from incurring debts totalling more than $2.4 million and more than $1.5 million, respectively when the companies were and should have been known to be insolvent.
At the time of ASIC’s decision, the three companies owed creditors more than $9 million, of which at least $2.5 million is owed to the Australian Taxation Office.
In making its decision to disqualify Mr Elriche, ASIC’s investigation relied on supplementary reports lodged by the liquidator of Bob Construction, Mr Daniel John Frisken of O’Brien Palmer Insolvency & Business Advisory and the joint liquidators of both Precise Structure and PS Scaffold, Mr Shumit Banerjee and Mr Jason Lloyd Porter of SV Partners. ASIC assisted the liquidators of Bob Construction and Precise Structure to prepare supplementary reports by providing funding from the Assetless Administration Fund.
