Post: ASIC bans former director of property development companies from managing corporations

ASIC has disqualified Mr Kenneth Wen Hsi Lee, of Lurnea, New South Wales, from managing corporations for a period of two years.

Mr Lee was a former director of S.E.T Services Pty Ltd (SET) and Sydney Project Group Pty Ltd (SPG), both failed land-owning companies involved in a property development known as ‘Skypoint Towers’ in Lidcombe, New South Wales.

The total amount of debts owed by the companies was in excess of $7 million.

An ASIC delegate found Mr Lee:

failed to take reasonable steps to place himself in a position to guide and monitor the management of the companies;
failed to exercise his powers and discharge his duties as a director of SPG in good faith, in the interests of SPG and for a proper purpose by pursuing an unnecessary appeal by SPG in the New South Wales Land and Environment Court in relation to the Skypoint Towers development;
failed to take all reasonable steps to secure compliance by SET and SPG with their obligations to keep written financial records that correctly recorded and explained the companies’ transactions, financial position and performance that would enable true and fair financial statements to be prepared; and
failed to ensure that the companies complied with their statutory duty to lodge Business Activity Statements with the Australian Taxation Office.
Mr Lee’s disqualification took effect on 31 October 2019 and will continue to 30 October 2021.

In making the decision to disqualify Mr Lee, the delegate relied on reports lodged by the liquidators of SET and SPG.

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