ASIC Bans Queensland Director David Fanning for Five Years

ASIC Announces Five-Year Disqualification on 13 July 2026

On 13 July 2026,ASICannounced that Queensland director David Shaun Fanning had been disqualified from managing companies for five years, with the ban remaining in effect until 6 July 2031. ASIC said the decision related to Fanning’s involvement in the management of four companies that collapsed between 2020 and 2022.

ASIC disclosed that, when the four companies collapsed, they owed a combined A$6,045,185 to unsecured creditors, including theATO. The announcement did not disclose the proportion of debt owed to each creditor or provide separate debt figures for the four companies, but confirmed that the total amount exceeded A$6.04 million.

Names and Business Relationships of the Four Failed Companies

Fanning served as a director, officer or general manager of the companies concerned. The four businesses operated in labour hire, machinery manufacturing and machinery sales, with their commercial relationships concentrated within the same machinery supply chain.

ASIC Identifies Financial Record-Keeping and Corporate Governance Failures

Regulatory Decision Covers Five Principal Findings

In its announcement published on 13 July 2026, ASIC said that, after reviewing Fanning’s involvement in managing the companies concerned, it found that he had failed to discharge adequately the management responsibilities expected of a director and company officer. The matters listed in the announcement included:

• Failing to take all reasonable steps to ensure that Ezy Machinery Global and Xtract Engineering maintained proper financial records;

• Failing to exercise due care and diligence to ensure that Ezy Machinery Global and Xtract Engineering complied with their statutory filing obligations;

• Failing to understand adequately his legal and governance obligations as a company director, officer and general manager;

• Failing to discharge adequately the responsibilities of a director and company officer in relation to operational oversight, record-keeping and compliance management;

• Making inaccurate statements about his actual role within the companies when explaining his relationship with them to ASIC.

These matters constitute regulatory findings published by ASIC as part of an administrative disqualification process. ASIC’s announcement did not describe the disqualification as a criminal conviction handed down by a court. Instead, it was an administrative decision based on the companies’ collapses, liquidators’ reports and Fanning’s performance of his corporate management duties.

（Source: ASIC, ASIC disqualifies Queensland director David Fanning for 5 years, published: 2026-07-13, “ASIC found that Mr Fanning” and unsecured debt paragraphs.）

Liquidators’ Supplementary Reports Supported ASIC’s Decision

Two Liquidators Submitted Material to the Regulator

ASIC said it considered supplementary reports submitted by two liquidators when making the disqualification decision. The report concerning Kabi Metal Fabrication was submitted by SV Partners liquidator Jason Porter, while the report concerning Xtract Engineering was submitted by Hall Chadwick liquidator Steven Gladman.

ASIC provided funding to the liquidators through the Assetless Administration Fund to assist them in investigating the causes of the companies’ collapses and preparing supplementary reports. The fund is generally used to support liquidation investigations involving companies with insufficient realisable assets, enabling liquidators to examine company accounts, directors’ conduct, asset movements and potential breaches of the law in greater detail.

Relationship Between the Reports and the Disqualification Process

1. After the companies entered liquidation, the liquidators examined their financial positions, books and management records;

2. The liquidators submitted reports or supplementary reports to ASIC concerning the companies’ solvency and management issues;

3. ASIC assessed whether to commence disqualification proceedings based on the number of failed companies, the director’s conduct and the material provided by the liquidators;

4. ASIC gave the relevant individual an opportunity to provide explanations and submissions before deciding, following its review, whether to disqualify that person from managing companies.

（Source: ASIC, ASIC disqualifies Queensland director David Fanning for 5 years, published: 2026-07-13, paragraphs concerning the liquidators’ supplementary reports and the Assetless Administration Fund.）

Disqualification Remains in Effect Until 6 July 2031

General Company Management Activities Are Restricted

According to ASIC’s announcement, Fanning’s disqualification from managing companies will remain in effect until 6 July 2031. During the disqualification period, unless granted permission by ASIC or a court, Fanning may not manage an Australian company as a director or by participating in significant decisions, influencing company operations or undertaking similar activities.

ASIC also maintains a register of banned and disqualified persons, which publishes details of individuals subject to relevant regulatory restrictions. The types of restrictions covered by the register include:

• Participating in the management of a company or serving as a company director;

• ConductingSMSFaudit work;

• Undertaking activities in the financial services or credit industries that are subject to a banning order.

Hudson David Trustee Company Granted Limited Permission

ASIC granted Fanning limited permission to manage Hudson David Pty Ltd, ACN 139 413 817. The company is the trustee of the Fanning Superannuation Fund.

This permission applies only to the trustee company expressly identified in ASIC’s announcement and does not mean that the five-year disqualification has been revoked. According to the announcement, the general disqualification remains in effect until 6 July 2031, while the permitted company and the management activities that may be undertaken are separately restricted.

（Source: ASIC, ASIC disqualifies Queensland director David Fanning for 5 years, published: 2026-07-13, paragraphs concerning the Hudson David permission, the disqualification end date and the register.）

Section 206F of the Corporations Act Sets Out the Conditions for Disqualification

ASIC May Impose a Disqualification of Up to Five Years in Certain Corporate Failure Cases

Section 206F of the Corporations Act 2001 authorises ASIC to disqualify a person from managing companies for up to five years where the prescribed conditions are met. The provision primarily applies where a company officer has been involved with multiple companies during a specified period and those companies subsequently enter liquidation and are reported as being unable to pay their debts.

1. During the seven years preceding ASIC’s relevant notice, the person was an officer of two or more companies;

2. The companies began to be wound up while the person was serving as an officer or within the prescribed period after the person ceased holding that position;

3. The liquidators submitted reports to ASIC concerning the companies’ inability to pay their debts;

4. ASIC issued the person with a notice to show cause and provided an opportunity to make submissions on the proposed disqualification;

5. After considering the corporate failures, management conduct and other relevant matters, ASIC determined that the disqualification was justified.

Fanning May Apply for a Review of ASIC’s Decision

Fanning is entitled to apply to theARTfor a review of ASIC’s decision. The review process may reconsider the facts, evidence and application of law underlying the administrative decision. However, unless the decision is varied, suspended or revoked, the disqualification published by ASIC remains in effect under its existing terms.

（Source: Australian Government Federal Register of Legislation, Corporations Act 2001, Section 206F, current compilation date: 2025-12-19; ASIC, ASIC disqualifies Queensland director David Fanning for 5 years, published: 2026-07-13, Background and review rights paragraphs.）

Frequently Asked Questions About ASIC’s Disqualification of Queensland Director Fanning