Former young rich-listed coal mining entrepreneur and now bankrupt, Nathan Tinkler has been banned from managing businesses in Australia due to his involvement in the collapse of 11 companies.

Key points: Mr Tinkler, a former BRW young rich lister, enjoyed a net worth $600 million in 2010

Mr Tinkler, a former BRW young rich lister, enjoyed a net worth $600 million in 2010 He and two associates breached directors' duties allowing companies to trade insolvent

He and two associates breached directors' duties allowing companies to trade insolvent The breaches relate to mining companies, a thoroughbred racing business and the Newcastle Jets A-League club

The Australian Securities and Investments Commission (ASIC) banned Mr Tinkler for three years and nine months over a series of Corporations Act breaches involving his portfolio of interests in mining, thoroughbred racing and sports.

Along with Mr Tinkler, ASIC also banned two of his associates, Donna Dennis and Troy Palmer, for between three and four years.

Following a report from liquidators into the collapse of the companies, the trio were found to be guilty of a number of breaches, included allowing a company to trade while insolvent, failing to ensure taxes were paid, failing to discharge duties as a director and allowing at least one of the companies to operate at a loss.

The failed companies include Mulsanne Resources, a shelf company which went into liquidation in 2012, and Aston Minerals, a base metal play that was placed in receivership in 2013.

Mr Tinkler was declared bankrupt in February 2016 on claims from global finance giant GE Commercial over $US2.3 million ($3.1 million) it was owed from the sale of a private jet.

Mr Tinkler, now 41 years old, was reported to have had a net worth in excess of $1 billion at the time he floated his Hunter Valley-based coal mining interests in 2010.

At the height of his wealth, he owned both the Newcastle Jets A-League club and the Newcastle Knights rugby league club, as well as the large racing stable and stud, Patinack Farm.

From a billionaire to bankrupt in less than 10 years

At the time of his bankruptcy, creditors - excluding GE - claimed he owed them around $250 million.

At the head of the list was the Tax Office which was owed $2.2 million, while his financiers including Credit Suisse were owed $165 million, according to a filing to the Australian Financial Security Authority.

Retail billionaire and thoroughbred enthusiast Gerry Harvey had his hand up for $9.5 million.

Mr Tinkler said his assets at the time had been trimmed to $2,000 in cash and property south of Port Macquarie.

The entrepreneur started wheeling and dealing in coal back in 2006, when he pulled together $1 million for a deposit on the disused Middlemont mine in central Queensland.

Eighteen months later he was worth around $450 million, having traded his original interests through to the world's largest steel company AccelorMittal.

"The disqualifications imposed on these directors should highlight the consequences that can follow when companies are poorly managed," ASIC commissioner John Price said.

"ASIC will seek to hold company directors accountable if they systemically fail to discharge their obligations when managing companies."

Under the Corporations Act the trio faced a maximum ban of five years.

Mr Tinkler will be allowed to resume a role in management, or on a board, in February 2021.