Former young rich-lister and coal mining entrepreneur Nathan Tinkler has been banned from managing businesses in Australia due to his involvement in the collapse of 11 companies.
The Australian Securities and Investments Commission (ASIC) banned Mr Tinkler for three years and nine months over a series of Corporations Act breaches involving his portfolio of interests in mining, thoroughbred racing and sports.
Along with Mr Tinkler, ASIC also banned two of his associates, Donna Dennis and Troy Palmer, for between three and four years.
Following a report from liquidators into the collapse of the companies, the trio were found to be guilty of a number of breaches, included allowing a company to trade while insolvent, failing to ensure taxes were paid, failing to discharge duties as a director and allowing at least one of the companies to operate at a loss.
Mr Tinkler, now 41 years old, was reported to have had a net worth of around $600 million at the time he floated his Hunter Valley-based coal mining business Aston Mining in 2010.
At the height of his wealth, he owned both the Newcastle Jets A-League club and the Newcastle Knights rugby league club, as well as the large racing stable and stud, Patinack Farm.
“The disqualifications imposed on these directors should highlight the consequences that can follow when companies are poorly managed,” ASIC commissioner John Price said.
“ASIC will seek to hold company directors accountable if they systemically fail to discharge their obligations when managing companies.”