New beginnings - 25% Truth, 80% Bollocks

[Bogus Dave]

An investigation into Swindon Town FC owner's former businesses could have repercussions for the club itself, it has been revealed.

Clem Morfuni former firm, Axis Plumbing NSW PTY Ltd, is currently being closed by a liquidator who has found what he believes could be examples of wrongdoing.

Suggestions of failure to provide accounts, potential breaches of director duties and the possible breaking of Australian corporate law are among the things he is investigating.

It is also made clear that it still concerns both Mr Morfuni as former owner and director, as well as the company’s owner and director at the time of liquidation, James Skelton.

The liquidator, Peter Krejci, says as a result of their conduct there may be justification to pursue both directors 'personally for the quantum of any losses suffered, which could see them face a potential financial penalty.

In the report published by the Australian Securities and Investment Commission (ASIC), Mr Krejci said: “I have conducted preliminary investigations of the company’s affairs since my appointment, and I believe that there may be a potential insolvent trading/breach of director duty claim against the former director for $1.6m.”

This figure relates to debt owed to unsecured creditor The Shore Group, a Brighton-based construction firm, that is owed money after being commissioned by Axis M&E UK Ltd to provide staff for a project in London in 2019.

When Axis M&E UK went into liquidation, Axis Plumbing NSW became liable for the debt because it had given a guarantee to The Shore Group.

At the time this contract was made, Australian national Mr Morfuni was sole director and shareholder of the firm Axis Plumbing NSW.

The Shore Group filed a UK High Court claim against Axis Plumbing NSW to retrieve the debt, in February 2022, which it won in September.

Then in February 2023, just three months before Axis Plumbing NSW was placed into administration, Shore Group won a subsequent second High Court judgement in Australia, allowing it to pursue that debt in both countries.

As part of an extensive investigation into the business, Mr Krejci discovered what he felt could be possible examples of wrongdoing such as not providing access to the company’s accounting software and books, insolvent trading, conducting an uncommercial transaction, and conducting an unreasonable director-related transaction.

He also relays evidence of several breaches of Directors' Duties.

“I have reviewed the various aspects of these directors' responsibilities and have identified several actions that would be considered breaches of directors' duties,” he said.

This included duty of care and diligence, duty of good faith and duty not to make improper use of position.

The report says consequences of a breach of duties for the directors in liquidation could include a liquidator pursuing the directors personally for the total of any loss suffered by companies arising from the breach of duty.

The ASIC could also prosecute the directors criminally for their conduct which could result in a maximum fine of $200k or imprisonment, or it could do so under a civil penalty provision which could also result in a maximum fine of $200k.

Other penalties include the ASIC giving them banning orders prohibiting them from managing a company.

The Shore Group has given the liquidator further funding to fully investigate these findings and is even pursuing court proceedings which would see Mr Morfuni summoned to an Australian court to give evidence publicly and under oath.

A spokesperson for The Shore Group said: “We are encouraged by the findings within the report, in particular, the activities of Clem Morfuni while the debt was accrued.

“The Shore Group will continue to pursue all options of further investigations, including funding a public examination with the liquidators of Clem Morfuni and James Skelton.”

There was another potential unsecured creditor with Osborne, also known as Geoffrey Osborne Ltd, filing a proof of debt to Mr Krejci for £508,460.

Osborne entered a contract with Axis Services Group for a tower construction project in London in 2021, and it claims that Axis Plumbing NSW was listed as a guarantor for that contract.

But as the now-liquidated Axis Services Group was active at the time of writing, Mr Krejci stated this could not be pursued.

Mr Morfuni was approached for comment but did not respond.

[Nomoreheroes]

Great!

[The Artist Formerly Known as Audrey]

Why not spell out what the repercussions for the club could be, if any.

[STFC_Manc]

Why not spell out what the repercussions for the club could be, if any.

The only one I could think of is less money going into the club?

[Nemo]

Wasn't trading whilst insolvent what Diamandis was banned from being a director on account of?

If Morfuni is the sole benefactor of the club and the club is trading at a loss, it's not hard to see why him being sued personally would be a problem. Also if he was to be disqualified as a director, we have no others...

[TheDukeOfBanbury]

Even if Clem wanted out of the Club he is not the sole owner.
Only knows who has a piece of it now. Only positive it cannot stay hidden forever.
Maybe the lids will get lifted and the real truth will start to emerge.


Love gone for me, these parasites have taken it away.

[The Artist Formerly Known as Audrey]

Does Aussie rules apply here though? From what I understand there is no Axis in the UK any more so if he’s disqualified under Aussie law from his Aussie businesses how does that affect him here.

[Nemo]

Does Aussie rules apply here though? From what I understand there is no Axis in the UK any more so if he’s disqualified under Aussie law from his Aussie businesses how does that affect him here.

The initial claim here is in the UK, they've just won the right to pursue him in Australia as well.

[TailBetweenLegs]

Even if Clem wanted out of the Club he is not the sole owner.
Only knows who has a piece of it now. Only positive it cannot stay hidden forever.
Maybe the lids will get lifted and the real truth will start to emerge.


Love gone for me, these parasites have taken it away.

The only way is for fans to stop buying tickets etc. When the money runs out they will want out. I hope the trust really start pushing this

[The Artist Formerly Known as Audrey]

I think it’s more that people are using the club illegally than just taking money out of the club. As long as the club is still functioning, at whatever level, they will still make money. A drop in ticket income will only result in an equal drop in budget.

[Frigby Daser]

If he is found guilty of trading whilst insolvent, here or in Australia, I think that would be one of the disqualifying events for the EFL. What that means in terms of how immediately he would need to relinquish control, I don’t know. Presumably it pushes someone like Kiely forwards, because we already know Zavier Austin also fails the test.

On one hand it may accelerate an exit (but may simply be another rejig of names on paper with the same fools in control). I think it reduces the prospect of getting a credible subsequent owner. It needs someone who is prepared to buy a club from knowingly dishonest people, who will not necessarily disclose details of the club’s finances accurately or at all prior to sale.

There is also of course the question of why Axis would not allow access to their financial data. Anything to hide?

[Leggett]

https://www.thefa.com/-/media/files/thefaportal/governance-docs/rules-of-the-association/2021-22/owners-and-directors-test.ashx

(xiv) I have not engaged in conduct outside of the United Kingdom that, in the reasonable opinion of The
Association, would constitute an offence of the sort described in Disqualifying Condition (iii) if such conduct
had taken place in the United Kingdom, whether or not such conduct resulted in a Conviction.

(iii) I have not been convicted of any of the following offences, or where I have, this conviction is now considered
spent under the Rehabilitation of Offenders Act 1974;
(a) an offence involving a Dishonest Act;
(b) corruption;
(c) perverting the course of justice;
(d) committing a serious breach of any requirement under the Companies Act 1985 or 2006 or any
statutory modification or re-enactment thereof;
(e) dishonestly receiving a programme broadcast from within the UK with intent to avoid payment under
Section 297 of the Copyright, Designs and Patents Act 1988;
(f) admitting spectators to watch a football match at unlicensed premises under Section 9 of the Football
Spectators Act 1989;
(g) ticket touting under Section 166 of the Criminal Justice and Public Order Act 1994;
(h) any attempt or conspiracy to commit any of the offences set out in paragraphs (a) to (g) above;
(i) having an unspent conviction by a court of competent jurisdiction anywhere in the world (including
any attempt and/or any conspiracy to commit the same) that results in a sentence of at least 12
months imprisonment but for the avoidance of doubt, not a suspended jail sentence unless that
sentence is subsequently activated for a period of at least 12 months for whatever reason;
(j) any conviction for a like offence to any of the offences set out in paragraphs (a) to (h) above by a
competent court having jurisdiction outside of England and Wales.

Hmmmm.

[Frigby Daser]

Fails.

[Bogus Dave]

Stfc Manc will be around soon to tell us that Australia is a country built by criminals so this is nothing to worry about

[Quagmire]

Stfc Manc will be around soon to tell us that Australia is a country built by criminals so this is nothing to worry about