Liabilities may be raised from liquidation of Tinkler's Mulsanne Resources
Nathan Tinkler may face action by Australian Securities and Investments Commission (ASIC) if the regulator believes he breached his duty to prevent the company from trading while insolvent, according to a corporate law expert at the University of Western Sydney, raising the prospect he might be disqualified from being a director of a company.
After failing to come up with $28.4 million owed to Blackwood Corporation, Mulsanne Resources – a company where Nathan Tinkler is a director – is being wound up, with the NSW Supreme Court appointing Ferrier Hodgson as liquidators.
Dr Marina Nehme is a senior lecturer at the University of Western Sydney, and completed her PhD on the use of enforceable undertakings by the ASIC.
She says Mr Tinkler may face civil liability if it is found that he allowed the company to trade when it is insolvent.
“If the regulator finds this is the case, the liquidator may take action against Nathan Tinkler as he may be found liable for all the debts since the company became insolvent,” says Dr Nehme.
“Furthermore, the ASIC may take action against Tinkler if it believes he breached his duty to prevent the company from trading while insolvent.
“Any action by the regulator may also lead to the disqualification of Tinkler from being a director of a company.”
Another question that may be raised relates to the ties between the Tinkler group and Mulsanne Resources, observes Dr Nehme.
“If Mulsanne Resources is deemed as a subsidiary of the group then the group may find themselves liable for the debt of the subsidiary,” she says.
“The Corporations Act 2001 (Cth) notes that holding companies may be held liable for the debt of the subsidiaries if they allowed their subsidiary to trade when insolvent.”
Dr Nehme is available for interview. For further information please contact the UWS Media Unit.
21 November 2012