In Queensland Building and Construction Commission v Smith [2024] QDC 101, the District Court of Queensland considered whether the deregistration of a company prevented its director, Damien John Smith, from being held personally liable for debts claimed by the Queensland Building and Construction Commission (the Commission). The Commission sought to recover payments made under a statutory insurance scheme from Mr Smith, who was the director of the now-deregistered building contractor.
Judge Porter KC found that the deregistration of the company did not prevent liability from attaching to Mr Smith, citing sections 111C(3) and (6) of the Queensland Building and Construction Commission Act 1991 (Qld). These sections allow the Commission to pursue directors of deregistered companies for debts arising from payments made under the statutory insurance scheme. The judge emphasised that even though the company's debts are generally extinguished upon deregistration, the specific legislative framework permits recovery from its directors to ensure that liabilities under the scheme are met.
In conclusion, the court answered the separate question in the negative, affirming that Mr. Smith could still be held liable regardless of the company's deregistration. The court made no order as to the costs of the application and instructed Mr Smith to file an amended defense by a specified date.