A bankrupt Mosgiel businessman could be banned from running companies for up to a decade after facing three liquidations in the past four years.<\/p>\n
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.<\/p>\n
It comes as a Dunedin businessman, who claims he is owed thousands by Mr Burns, is calling for tougher penalties on companies who \u2018\u2018just take the piss\u2019\u2019 and intentionally rack up big bills.<\/p>\n
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.<\/p>\n
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.<\/p>\n
He was also declared bankrupt in June last year.<\/p>\n
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.<\/p>\n
As the director of Otago Excavation, Burns Group 2018 and Titan Bulk Haulage \u2014 which all \u2018\u2018failed\u2019\u2019 within a five-year period \u2014 Mr Burns qualified for this, Ms Cook said.<\/p>\n
\u2018\u2018The registrar\u2019s 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\u2019s mismanagement contributed to the failure of their companies.<\/p>\n
\u2018\u2018Any individual who is recorded as being prohibited or currently bankrupt will be unable to complete the incorporation process on the Companies Register.\u2019\u2019<\/p>\n
R&R Hiab Services Ltd managing director Ray Casey estimated he was owed about $12,000 by Mr Burns.<\/p>\n
In January last year, Mr Casey said Mr Burns hired several shipping containers in which to store his personal effects.<\/p>\n
\u2018\u2018And we just have never ever been paid for them.\u2019\u2019<\/p>\n
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.<\/p>\n
They were still full of Mr Burns\u2019 gear.<\/p>\n
\u2018\u2018We\u2019ve given him his 90-day notice and he\u2019s promised us and promised us and promised us it\u2019s going to get paid.<\/p>\n
\u2018\u2018His 90-day notice period was up on the 25th of March, and he still keeps saying he\u2019s going to pay, and I said \u2018well, I need to recover our debts\u2019.<\/p>\n
\u2018\u2018They end up owing us money, then we struggle to meet our commitments, we go without on other things because we\u2019re meeting those commitments that these other companies aren\u2019t.\u2019\u2019<\/p>\n
A recent liquidators\u2019 report said they were considering liquidating another of Mr Burns\u2019 companies, Forest Distribution and Logistics Ltd, of which his son is now listed as the director.<\/p>\n
The liquidators also said it was understood Mr Burns intended to present a settlement plan to seek the removal of his bankruptcy status.<\/p>\n
Responding to questions by the\u00a0Otago Daily Times, Mr Burns said he intended to put a proposal to creditors \u2018\u2018but will not be doing so through the media\u2019\u2019.<\/p>\n
Lawyers had been engaged to begin the process and reaching a fair settlement with creditors was the primary outcome.<\/p>\n
\u2018\u2018I can\u2019t be clearer that whilst subject to any formal insolvency process I have no active interest in any companies,\u2019\u2019 he said.<\/p>\n
Mr Burns disputed Mr Casey\u2019s claims and said he was \u2018\u2018recovering my position and providing solutions to pay creditors respectfully\u2019\u2019.<\/p>\n