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A Supreme Court fight between siblings at the centre of a troubled NDIS provider has taken a fresh turn after a lawyer told the court he could not take instructions from a company’s acting director after learning of his overseas bankruptcy.
The proceedings were brought in December by Bila Counselling and Support Services on behalf of director Lenard Swanepoel-Trollip, against his sister Jennifer McAlpine, a former employee and current shareholder of the NDIS-funded disability provider.
The court developments come after this masthead revealed last week that Lenard and his husband Christiaan Swanepoel-Trollip were declared bankrupt in South Africa in 2017 after the collapse of their real estate business, and have since acted as directors and shareholders of several NDIS-related companies in Australia, which is not allowed under Australian law.
The directors were accused of moving client funds from trust accounts to other accounts, and the company entered liquidation before the pair moved to Perth.
The couple have since been connected to two further business collapses in Perth. Lenard, on behalf of the couple, has previously denied any allegation of wrongdoing, fund misappropriation or phoenixing allegations.
In the Supreme Court proceedings, Bila Counselling and Support Services, under Lenard’s control, alleged McAlpine misused confidential client information to take clients to a separate company last year.
McAlpine denied the allegations and defended the case, telling this masthead Lenard’s bankruptcy history made him ineligible to manage or direct Australian companies.
At the hearing on Wednesday, Supreme Court Justice Matthew Howard granted permission for barrister Ed Fearis to appear for Lenard, who was not in court, for the purpose of explaining the procedural difficulties faced.
Fearis told the court that because he had discovered Lenard was an undischarged bankrupt overseas, he was “incapable of acting as a director” under Australian law.
“Mr Swanepoel-Trollip is unable to authorise [Bila] to authorise proceedings … the proceedings are currently an irregularity,” Fearis told the court.
He told the court that because both Lenard and McAlpine owned 50 per cent of shares each, there was a “deadlock” that complicated things, but would see whether Lenard could advise lawyers as a shareholder.
McAlpine’s lawyer Jaeger Man told the court many questions remained, and they would need a “full and frank disclosure” from Lenard, including his residential status.
“It appears on the face of it, [Lenard] managing the company is an offence,” Man told the court.
“What is happening with [Bila] at present and NDIS participants? My instructions are that Mr Swanepoel-Trollip is referring people to yet another organisation. There’s a lot going on.”
The court was told mediation would not proceed unless it was first clarified who was lawfully entitled to act for Bila Counselling and Support Services.
The case was adjourned until February 13.
Carla Hildebrandt is a journalist with WAtoday. She previously worked on ABC’s Four Corners and as a court reporter at The Daily Telegraph in Sydney. For secure contact: carlahildebrandt@proton.me.Connect via email.From our partners
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