Late last year, a liquidator disciplinary committee decided that the registration of registered liquidator Trajan John Kukulovski of Chan & Naylor RRI Pty Limited should be cancelled, and that ASIC should publish the committee’s report of its decision.
However, Mr Kukulovski applied to the Administrative Appeals Tribunal (AAT) for review of the disciplinary committee’s decisions and, in the interim, for a stay on implementation of the decisions and for confidentiality orders.
AAT deputy president Bernard McCabe refused to grant a stay on the termination decision but ultimately decided to stay the disciplinary committee’s decision that ASIC publish the reasons for the termination decision.
As such, Mr Kukulovski’s registration termination took effect on 15 January 2020 and will not be allowed to practise as a registered liquidator while the AAT review of the committee’s decisions proceeds.
“The implementation of the publication decision is likely to have a greater impact than the cancellation decision on its own. I accept the effect of the bad publicity might be hard to undo even if the applicant were successful in the review,” Mr McCabe said.
Mr Kukulovski’s registration termination comes after a lengthy investigation dating back to the period where he was the external administrator of a number of companies between 2009 and 2012.
While he was not accused of acting dishonestly or of obtaining a profit, ASIC expressed concerns directing to Mr Kukulovski’s competence and diligence.
The disciplinary committee, comprising of an ASIC delegate, a registered liquidator nominated by the Australian Restructuring Insolvency & Turnaround Association (ARITA) and a minister’s delegate, ultimately found that Mr Kukulovski was not a fit and proper person to continue to be a registered liquidator.
ASIC Commissioner John Price said: “Creditors rely on registered liquidators, who hold ‘other people’s money’ in the course of administering companies and have a right to expect registered liquidators to act with competence and diligence.
“ASIC will ensure that those who fail to meet these expectations are held to account.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.