Glad Indigenous Wound Up After Court Dispute Over Control and Funds

Glad Indigenous, a joint venture created in 2021 between Glad Holdings and Scott Franks to win federal cleaning and security contracts, was wound up more than two years ago after running out of money. 6 per cent. In 2023 Glad Holdings applied to the Supreme Court of New South Wales to wind up the business.

The court heard that the minority shareholder transferred $130,000 from the company account without notice and that the parties disagreed over whether the transfer repaid loans from Glad Holdings. The court dismissed the winding-up application and ordered costs against Glad Holdings. Glad Indigenous nevertheless incurred significant financial losses through the proceedings.

Mr Franks said the experience left him convinced the company had been subject to black cladding, in which a non-Indigenous partner effectively controls an Indigenous-owned business. "In effect the minority partner is controlling or taking control of the company," he said.

After a further legal challenge over an unpaid accounting bill, Mr Franks said the company was deep in debt and could not be restructured.

He closed the business because it could not pay its bills. A page for Glad Indigenous remains listed on the Glad Group website. A Glad Group spokesperson said the company was unable to comment. 5 per cent of annual procurement spending to businesses at least 50 per cent First Nations owned.

From July 1 the threshold rises to 51 per cent Indigenous ownership and control. Nearly $15 billion has flowed through the policy over the past decade. Australian National University research found less than one-third of contracts went to majority Indigenous-owned firms.