Dynasty Property Development’s Trent Shaw to be referred to ASIC

A report into the collapse of a Sunshine Coast-based shed company has identified a number of possible offences committed by the directors, including trading while insolvent and failing to act with a degree of care and diligence.

Kathleen Hansen and Trent Shaw of Shed Beast, previously Dynasty Property developments.

A report into the collapse of a Sunshine Coast-based shed company has identified a number of possible offences committed by the directors, as the debt owed to creditors climbs to $2.4m.

Liquidator David Stimpson was appointed to wind up the company, Dynasty Property Developments Pty Ltd, in May this year, along with the related company, Bawws Digital Media and Business Solutions Pty Ltd.

Mr Stimpson published his statutory report to creditors of the company on August 7, 2024, revealing the findings of his investigations into the companies and the directors, Kathleen Hansen and Trent Shaw.

Australian Securities and Investments Commission documents show Ms Hansen was the director of both companies when they entered liquidation.

However, Mr Stimpson stated in the report to creditors, he believed Mr Shaw was in control of the “day-to-day” business operations despite investigations showing him to be an undischarged bankrupt and unable to manage a corporation.

Due to this, Mr Shaw may be held liable as if he were the director, according to Mr Stimpson.

The report stated the failure of the shed company was influenced by high cash use and poor management.

Mr Stimpson’s findings show the offences that may have been committed include continuing to trade a company while insolvent, failing to provide a liquidator with report on company activities and property and failing to act with a degree of care and diligence, in good faith and for a proper purpose.

Mr Shaw specifically is mentioned as having possibly committed an offence by managing a corporation as a disqualified person.

Mr Stimpson said it appeared the company became insolvent in March 2023 as the total debt figured owed to creditors surpassed $2.4m, according to the latest report.

“My preliminary estimate is that the company incurred debts totalling $561,955 which remain outstanding after March 2023,” Mr Stimpson said.

“Based on the information currently known, I do not believe the Director has any defence available to avoid personal liability of a potential insolvent trading claim.”

Mr Stimpson also said he noticed transactions made to both Mr Shaw and Ms Hansen from the company before the liquidation, which could be considered as void.

“I have identified a number of transactions paid to the Director and the Director’s spouse which may be considered voidable.”

Mr Stimpson said the offences will be reported to ASIC in a confidential report.

Ms Hansen and Mr Shaw did not respond to questions put to them by this publication regarding the claims of insolvent trading and Mr Shaw’s undischarged bankruptcy while operating the shed company.