Register
Professional Misconduct

Gregg Ross Morgan


Address: Lenaghan, Newcastle, NSW, Australia
Sex: Male
Occupation: Company Director/Executive
Date: 29 April 2008


Details



ASIC has disqualified four directors involved in the failure of property development companies in the Hunter Valley-based Morgan and Bay Group. 

Mr Gregg Ross Morgan, of Lenaghan, New South Wales, has been disqualified from managing corporations for five years; Mr Darren Boyd Van Aardt, of Brightwaters, New South Wales, has been disqualified for three years; and Mr Phillip Norman Rankin, of Redhead, and Mr David Hastings Warne, of Pymble, New South Wales, have each been disqualified for 18 months.

ASIC’s action follows the collapse of Morgan Building & Property Maintenance Pty Ltd, Bay Building Developments Pty Ltd, Bay Building Investments Pty Ltd, Bay Constructions (Aust) Pty Ltd, Debay Holdings Pty Ltd and Victory Parade Pty Ltd in 2006. Mr Morgan and Mr Van Aardt established and were directors of all six companies, the first of which was established in late 1998. Mr Rankin and Mr Warne were directors of Morgan Building and Bay Building Developments from mid-2004.

ASIC found Mr Morgan, Mr Van Aardt, Mr Rankin and Mr Warne were responsible for the failure and financial deficiencies of the corporations and engaged in multiple forms of misconduct. Specifically, ASIC found Morgan Building, Bay Building Investments and Bay Constructions paid trade creditors in preference to employees’ superannuation. Mr Morgan and Mr Van Aardt also failed to prevent Bay Building Investments from incurring debts totalling $576,227 while insolvent. 

ASIC also found the directors made, or agreed to the making, of uncommercial and irrecoverable loans to related entities. For example, Morgan Building made interest-free and unsecured loans totalling $423,193.80 to corporations of which Mr Morgan, Mr Van Aardt, Mr Rankin and Mr Warne were directors. Bay Building Investments made interest-free and unsecured loans totalling $5,806,407 to corporations of which Mr Morgan and Mr Van Aardt were directors and Bay Constructions loaned $1,296,893 to Bay Building Investments without interest or security. 

Morgan Building & Property Maintenance Pty Ltd, Bay Building Developments Pty Ltd, Bay Building Investments Pty Ltd, Bay Constructions (Aust) Pty Ltd, Debay Holdings Pty Ltd and Victory Parade Pty Ltd undertook various medium-to-large scale commercial and residential developments in Newcastle and the Hunter region. 

Liquidators have concluded that the companies are unable to pay any dividend to unsecured creditors which include building and construction contractors, suppliers and service providers in the Hunter region, project manager consultants, employees, investors and the Australian Tax Office. The total deficiency of the corporations is $23,308,127. The companies owe unsecured creditors a total of $22,789,454. The deficiency for Morgan Building was $2,359,789 with unsecured creditors of $1,800,000. The deficiency for Bay Building Developments was $219,020.55 with unsecured creditors of $215,988.45.

ASIC’s investigation followed the lodgement of reports by liquidators of the companies under section 533(1) of the Corporations Act about the inability of the companies to pay their debts. Mr Jonathon McLeod of McLeod and Partners was the liquidator of Morgan Building, Bay Building Investments, Bay Building Developments, Bay Constructions and Debay Holdings. Mr James Shaw of Ferrier Hodgson was the liquidator of Victory Parade.