MEHAJER'S 'CAVALIER APPROACH' EARNS THREE-YEAR BAN
Written on the 5 September 2016 by Business News Australia
THE Administrative Appeals Tribunal (AAT) has ruled that Salim Mehajer (pictured), property developer and controversial former deputy mayor of Sydney's Auburn City Council, will be restricted from managing any corporations until 2018.
Upholding the original decision handed down by the Australian Securities and Investment Commission (ASIC) in November 2015, the AAT found that Mehajer's company management history 'fell far short of what is reasonably expected of a director.'
In this case the AAT refers to Mehajer's management of failed companies SM Project Develeopments and SM Engineering and Construction, where his conduct in relation to business and property was deemed inappropriate and damaging.
The AAT found that Mehajer 'adopted a cavalier approach to his management of the companies, which included their responsibility to creditors, and his duties to ensure that the companies met their legal obligations.'
In affirming ASIC's decision, the AAT also stated that the barring was 'appropriate to protect the public and to allow Mr Mehajer time to properly acquaint himself with the duties of a director.'
ASIC Commissioner Greg Tanzer welcomed the AAT decision, noting that it has further reinforced ASIC's powers of prevention in the case of unsavoury directors.
"ASIC's power to disqualify directors of failed companies is an important preventative measure we use to safeguard the public interest," says Tanzer.
Mehajer will not be allowed back in the driver's seat of any company until the period of disqualification lifts on 5 November 2018.
Photo credit: Salim Mehajer Instagram post
Author: Business News Australia