A bankrupt Mosgiel businessman could be banned from running companies for up to a decade after facing three liquidations in the past four years.
The Ministry of Business, Innovation and Employment (MBIE) has confirmed Malcolm Burns, who owes creditors more than $4 million across multiple companies, qualifies to be prohibited from managing companies for up to 10 years if his businesses are found to have failed due to his mismanagement.
It comes as a Dunedin businessman, who claims he is owed thousands by Mr Burns, is calling for tougher penalties on companies who ‘‘just take the piss’’ and intentionally rack up big bills.
Mr Burns is the sole director of Burns Group 2018 Ltd and Otago Excavation Ltd, which are both in liquidation and are estimated to owe creditors $2,099,372 and $2,118,000, respectively.
Another company of his, Titan Bulk Haulage Ltd, was placed into liquidation in May 2024 and left creditors out of pocket by more than $1m.
He was also declared bankrupt in June last year.
MBIE business registries investigations and compliance manager Vanessa Cook said when an individual was a director of at least two companies placed into liquidation within five years, they became a candidate for prohibition by the Registrar of Companies.
As the director of Otago Excavation, Burns Group 2018 and Titan Bulk Haulage — which all ‘‘failed’’ within a five-year period — Mr Burns qualified for this, Ms Cook said.
‘‘The registrar’s power of prohibition enables the registrar to impose a period of prohibition not exceeding 10 years on a director where the registrar is satisfied that the director’s mismanagement contributed to the failure of their companies.
‘‘Any individual who is recorded as being prohibited or currently bankrupt will be unable to complete the incorporation process on the Companies Register.’’
R&R Hiab Services Ltd managing director Ray Casey estimated he was owed about $12,000 by Mr Burns.
In January last year, Mr Casey said Mr Burns hired several shipping containers in which to store his personal effects.
‘‘And we just have never ever been paid for them.’’
The containers ended up being moved into Storesafe facilities but he managed to get them back as the company held security over them, Mr Casey said.
They were still full of Mr Burns’ gear.
‘‘We’ve given him his 90-day notice and he’s promised us and promised us and promised us it’s going to get paid.
‘‘His 90-day notice period was up on the 25th of March, and he still keeps saying he’s going to pay, and I said ‘well, I need to recover our debts’.
‘‘They end up owing us money, then we struggle to meet our commitments, we go without on other things because we’re meeting those commitments that these other companies aren’t.’’
A recent liquidators’ report said they were considering liquidating another of Mr Burns’ companies, Forest Distribution and Logistics Ltd, of which his son is now listed as the director.
The liquidators also said it was understood Mr Burns intended to present a settlement plan to seek the removal of his bankruptcy status.
Responding to questions by the Otago Daily Times, Mr Burns said he intended to put a proposal to creditors ‘‘but will not be doing so through the media’’.
Lawyers had been engaged to begin the process and reaching a fair settlement with creditors was the primary outcome.
‘‘I can’t be clearer that whilst subject to any formal insolvency process I have no active interest in any companies,’’ he said.
Mr Burns disputed Mr Casey’s claims and said he was ‘‘recovering my position and providing solutions to pay creditors respectfully’’.
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