On 12 June 2026, ASIC disqualified Mrs Shashikumari Agrawal of Sydney, NSW from managing corporations for the maximum period of five years — and in doing so, sent a warning to every so-called “passive” director in Australia.
The disqualification follows the collapse of eight companies that formed part of the Mansa Group, which owe at least $76,866,569.71 to at least 272 unsecured creditors. Mrs Agrawal’s husband, Krishnakumar Agrawal, was already imprisoned for his role as the group’s controller — sentenced in November 2025 to three years and three months’ imprisonment for contraventions of the Corporations Act 2001 (Cth) and the Crimes Act 1900 (NSW).
Critically, ASIC accepted that Mr Agrawal was “the controlling mind” of the Mansa Group. He was the one making decisions. And yet ASIC still imposed the maximum five-year disqualification on his wife.
If you are a director of a Queensland company — even in a limited, nominal, or “for the family” capacity — this case should get your full attention.
What Happened: The Mansa Group Collapse
The Mansa Group was a collection of eight companies that collapsed in 2023. ASIC investigated the collapse and, in November 2025, secured the imprisonment of Krishnakumar Agrawal for fraud-related offences under the Corporations Act and Crimes Act.
Mrs Agrawal was a director of all eight of the failed companies. The combined debts across the group exceeded $76.8 million, affecting at least 272 unsecured creditors — businesses, suppliers, contractors, and individuals who are unlikely to see a full return.
Following its investigation, ASIC determined that despite not being the “controlling mind,” Mrs Agrawal’s conduct as a director of the failed companies demonstrated “a disregard for the law and proper management.” ASIC exercised its power under section 206F of the Corporations Act 2001 (Cth) and imposed a five-year ban — the maximum available — from managing corporations.
What ASIC Found: The Key Legal Principles
ASIC’s power to disqualify a director without a court order is found in section 206F of the Corporations Act 2001 (Cth). Under that provision, ASIC may disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies that were placed into liquidation, and the liquidators lodged reports of misconduct or the companies’ inability to pay their debts.
No criminal conviction is required. No court finding of wrongdoing is necessary. ASIC makes the determination itself, following an investigation and a show cause process, and the disqualification is then placed on ASIC’s public Banned and Disqualified register.
The Agrawal decision reinforces several important principles:
- The “controlling mind” argument does not absolve a co-director. Even where ASIC accepts that another person was primarily responsible for the company’s direction, it will still hold formally appointed directors accountable for their own conduct — or their failure to act.
- “Passive” does not mean “protected.” A director who allows a company to be run without proper oversight, who fails to ask questions, or who signs documents without understanding what they contain, is not protected by ignorance.
- The scale of the damage matters. $76.8 million across 272 creditors is a significant collapse. ASIC’s decision to impose the maximum five-year ban reflects the seriousness of the outcome, even where criminal culpability rested primarily with another individual.
The relevant sections of the Corporations Act engaged in cases like this include:
- Section 206F — ASIC’s power to disqualify (administrative disqualification, no court order required)
- Section 180 — Duty of care and diligence (the standard of a reasonable director)
- Section 181 — Duty of good faith (acting in the best interests of the company)
- Section 588G — Insolvent trading (obligation not to incur debts when a company is insolvent)
What This Means for Queensland Directors
The Mansa Group case is a Sydney story. But its lessons reach every boardroom in Brisbane, Queensland, and across Australia.
In our experience at Boss Lawyers, one of the most common situations we see is a director who was appointed to a company as a formality — a spouse, a family member, a business partner’s nominee — who then faces serious personal consequences when the company fails.
These situations arise more often than people expect. A family business where one partner “runs everything” but both are on the ASIC register. A company where a director was appointed to meet a financing condition and then stayed on without active involvement. A small company where a co-director deferred to the other on all decisions.
The law does not distinguish between an active director and a “figurehead” director when it comes to legal obligations. Both are subject to the same duties under the Corporations Act. Both can be disqualified under section 206F. Both can be held personally liable for insolvent trading under section 588G.
The Agrawal case makes plain that ASIC will pursue the maximum available sanction where a director has demonstrated disregard for the law — even where that disregard consisted of inaction rather than active wrongdoing.
Action Points: What Queensland Directors Should Do Now
If the Mansa Group case resonates with your situation, here are five concrete steps to take:
- Audit your directorships. Check ASIC’s register. How many companies are you a director of? Do you know the financial position of each one? If not, find out now — before a liquidator does it for you.
- Understand your obligations. Being a director is not an honorary title. You are legally required to act with care and diligence (s 180), in good faith (s 181), to avoid trading while insolvent (s 588G), and to assist liquidators if appointed. Ignorance is not a defence.
- Resign from any company you cannot properly oversee. If you are on a company’s books because someone asked you to be there — and you have no meaningful involvement in the business — you face personal legal exposure. Consider resigning, and seek advice on how to do so properly.
- Get board minutes and financial reporting right. ASIC’s liquidator reports flag inadequate record-keeping as a key risk factor for disqualification. Every company should hold regular director meetings, minute those meetings, and maintain up-to-date financial records.
- Take early advice if a company is in financial distress. If a company you direct cannot pay its debts, do not wait. The safe harbour defence under section 588GA is available — but only if you act promptly and obtain qualified restructuring advice. The window closes fast.
If you have received a show cause notice from ASIC, or if you are concerned about your personal liability as a director of a company in financial difficulty, you should obtain legal advice immediately. A disqualification under section 206F or a personal liability finding under section 588G can have career-ending consequences — and the time to act is before ASIC makes its decision, not after.
How Boss Lawyers Can Help
We regularly act for directors facing ASIC investigations, director disqualification proceedings, and personal liability claims arising from insolvent trading. We also act for creditors seeking to recover debts from company directors and related parties.
Mark Harley has more than 17 years’ experience in commercial litigation and insolvency law, and has acted in matters involving ASIC enforcement, director disputes, and major corporate insolvencies. We understand what is at stake — both for directors facing investigation and for creditors left out of pocket by failed companies.
If you are a director concerned about your personal liability, or if you are dealing with ASIC attention, call Mark Harley on 1300 267 711 or complete our online enquiry form for a confidential discussion.
Frequently Asked Questions
Can ASIC disqualify a director even if they weren’t responsible for the company’s failure?
Yes. Under section 206F of the Corporations Act, ASIC can disqualify a director if they were an officer of two or more companies that were wound up insolvent within a seven-year period. ASIC does not need to prove that the director personally caused the failure — it is enough that they were a director of failed companies and demonstrated disregard for their legal obligations. As the Mansa Group case shows, even accepting that another director was the “controlling mind” does not prevent ASIC from imposing the maximum ban on a formally appointed co-director.
What is the difference between a section 206F disqualification and a court-ordered disqualification?
A section 206F disqualification is an administrative action taken by ASIC directly — no court order is required. ASIC investigates, issues a show cause notice, considers the response, and then makes a decision. A court-ordered disqualification (under section 206C or 206D) is different — it requires ASIC or a liquidator to apply to the court. The practical effect is similar: both place the person on ASIC’s public Banned and Disqualified register and prevent them from managing corporations for the duration of the ban.
What should I do if I receive a show cause notice from ASIC?
You should obtain legal advice immediately. A show cause notice is ASIC telling you that it is considering disqualifying you and giving you an opportunity to respond. The response you file can materially affect the outcome — including whether ASIC proceeds and for how long. Do not respond without legal advice. The time limit on show cause responses is typically short (often 21 days), so act quickly.
This article is general information only and is not legal advice. You should obtain professional advice specific to your circumstances. The law described in this article reflects the position as at 15 June 2026.
Author: Mark Harley, Principal Solicitor, Boss Lawyers
Mark Harley has practised in commercial litigation and insolvency law for more than 17 years. He founded Boss Lawyers in 2014 and has acted in complex director disputes, insolvent trading claims, and ASIC enforcement matters throughout Queensland and nationally. Boss Lawyers is located at Level 27, Santos Place, 32 Turbot Street, Brisbane QLD 4000. Phone: 1300 267 711.
