ASIC has sought orders that Ross John McDermott be removed as liquidator, voluntary administrator and deed administrator of 26 companies and that he be prohibited from holding the office of liquidator, provisional liquidator, voluntary administrator or administrator of a deed of company arrangement for such period as the court sees fit.
The matter has been listed for directions in the Melbourne Federal Court on 5 February 2016. ASIC will not comment upon the proceeding until the court has determined whether an inquiry will be held and if so, then again after the court has made final orders.
Under the Corporations Act 2001, ASIC may apply to the court to undertake an inquiry where it appears that an insolvency practitioner has not faithfully performed, or is not faithfully performing, his or her duties as a liquidator or receiver or adhering to relevant legal requirements.
Where the court grants ASIC’s application for an inquiry, it may conduct an enquiry and examination of the insolvency practitioner.
The inquiry into the activity of Mr McDermott follows the earlier midweek action taken by ASIC against three registered liquidators.
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