ASIC recently investigated the conduct of Fitzroy-based sole practitioner liquidator, Raymond Sutcliffe in relation to 43 external administrations, resulting in the discovery that he had not adequately discharged his duties as a liquidator.
Following the investigation, Mr Sutcliffe submitted an enforceable undertaking on 23 June 2017, including a request to have his registration cancelled.
ASIC accepted Mr Sutcliffe’s application and the cancellation of his registration came into effect on 28 June 2017. Mr Sutcliffe must not reapply for registration for a period of three years.
ASIC's concerns included alleged failures to conduct pre-appointment independence reviews, properly investigate company affairs, take steps to protect and secure assets in a timely manner, or make sufficient requests of company officers for books and records.
Further, he allegedly failed to adequately investigate potential illegal phoenix activities and taxation offences of directors and their advisers.
“ASIC continues its focus on registered liquidators who fail to carry out their legal obligations to carry out adequate investigations and report fully to creditors, including in circumstances suggesting pre-appointment illegal activity,” ASIC commissioner John Price said.
“Creditors have every right to expect registered liquidators to act independently and competently - especially given their role as a fiduciary. The community needs to have trust and confidence in the administration of insolvent companies.”