Galeforce sinks

[disorderly]

https://www.sunshinecoastnews.com.au...der-goes-bust/

How horrible for the guys with boats being built .......and pretty dissapointing to see that the majority of the debt seems to be to blokes having boats built as well as money owed to the company by Director Scott Brough....

So what does that mean...?..the owner has taken all the money from people that have paid for boats or progress payments and transferred them to his personal accounts as a "directors loan" ......?

I see one reveiw from August last year where a customer was complaining of paying thousands and not receiving goods paid for ..

[stevej]

how many times does it have to happen before a better solution is found for ordering boats off plans ?
it has to be a criminal offense


id never trust anyone with progress payments, which means id prob never get a new custom made boat either.

[Lovey80]

how many times does it have to happen before a better solution is found for ordering boats off plans ?
it has to be a criminal offense


id never trust anyone with progress payments, which means id prob never get a new custom made boat either.

It has to stop. The law needs to change. The money he owed to the company and he money he owed to his employees. That should be garnished from his wages/income for the rest of his life exactly like a HECS debt is.

[Noelm]

There is lots at play here, technically it is illegal, but usually when disaster is realised, it's way too late, money paid by "progress payments" is gone keeping the company afloat, then suppliers start putting holds on materials and "progress" stops, sometimes other money from deposits from unsuspecting buyers and so on, keeps the door open for a bit longer, but in the end, it all goes down the gurgler. Now at times, directors/owners are just shonky and take buyers for a ride, if this is the case, then it's even more complex, especially if good accountants and legal people are involved.

[docaster]

It definitely is illegal. Trading while insolvent. But i don't know the details. Lots of things may have happened to put him in this position. First thing comes to mind, divorce settlement lol.
Interest rates etc
How big is the buisness?

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[docaster]

Going off that report it sounds like he run it into the ground.
The liquidators always get paid.
If the bloke had any integrity he would've given the customers their boats, paid his employees before he even ate. Possibly never paid their super each week. That's the first thing that doesn't get paid.
Customers should be able to get a bank guarantee by the builder before they hand over money for the value of the build.

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[chris69]

My be the owner of the company should be found and taken fishing and put in a rubber ring about 20 kms off the coast then he can think very hard while fishing about the money he has taken while he sits in the burly trail , he might remember where the can of money is buried in the back yard,I would be extremely devastating to have lot 56k and have nothing for it.

[Dignity]

Unfortunately under our laws we can't recover monies from a company directors personal assets. Maybe the law needs to change and a specific amount of money is required to be set up in a trust fund separate to the business that can't be accessed by the directors personally nor the business. It can start at a fairly low rate but continue to be added to when money is taken for new purchases. I would be happy to pay an extra 2% on my purchase if I knew my progressive payment or purchase had some protection, currently there isn't any. This money could be accessed to expand the business under some very rigorous reviews. If the company did go into receivership then this money would be available. The liquidators and theATO get paid in full. The ATO should be like the rest us, get avproportion or nothing. After all if the suppliers get some money the ATO still gets some of it back, the ATO wants 2 bites at the cherry. And the costs that are charged by liquidators are very high, they shoukd be reined in.
In this day and age $1M debt is not a great amount of money so I can only presume he had very little capital to start with and got into trouble early on

[Noelm]

It is complicated, and we see these stories regularly, and not just boat builders, lots of companies go belly up, but when deposits and progress payments are involved, it leaves a very sour taste in the mouth of the "losers"

[Dignity]

It is complicated, and we see these stories regularly, and not just boat builders, lots of companies go belly up, but when deposits and progress payments are involved, it leaves a very sour taste in the mouth of the "losers"

Yes, it's very complicated but unfortunately it's going to keep happening and even in the building industry the recent law changes there have managed to leave out in the cold especially around progress payments. It seems no matter what we pay we don't own it if a company goes bankrupt, something has to change there and I feel for the guy who paid it all only to not have a boat or even part of one. There are very few boat builders, I know of one, who will not take your money until the boat is finished, rare as hens teeth.

[Noelm]

The building industry is a mixed bag, it seems if the company is big enough, and has lots of houses in stages of completion, the Gov steps in with some kind of "bail out" but for the smaller guy with maybe one or two on the go, you're out in the cold if goes down the drain. Boat building is a bit of a niche market almost, unless you are buying (say) a Telwater product, then you're on thin ice if you don't do your research and keep an eye on progress.

[chris69]

How does a company trade and make no tax payments or super contributions and how does the taxation department let this happen this company owed 278 k in tax 82 k in super it should have been stopped ages ago before others lost there deposits and boats.

[Dignity]

How does a company trade and make no tax payments or super contributions and how does the taxation department let this happen this company owed 278 k in tax 82 k in super it should have been stepped ages ago before others lost there deposits and boats.

Chris, I agree with you. On the super side the company needs to pay contributions on a regular basis, some companies only do it quarterly - unless this has recently changed. I believe it should be done at the time of wages paid as it does stop that use of monies the company doesn't actually own.
ATO is rather lax in chasing late payments and you can go years without being tapped on the shoulder.

[stevej]

Super rules are changing so employee has to do it every pay

[Dignity]

Super rules are changing so employee has to do it every pay

Steve, did you mean employer? I've been out of it for some time and haven't followed what's happening in the industry but it's about time if that is the case.