Stan Traianedes, a sole practitioner trading under the name S & Z Insolvency and Forensic in Box Hill, Victoria, has had his registration suspended by the Companies Auditors and Liquidators Disciplinary Board following an application by ASIC.
The suspension is for three years effective 9 January 2017.
The Board found that Mr Traianedes failed to adequately and properly carry out his duties as a liquidator in relation to the external administration of Farr Enterprises Pty Ltd, B K Diesel Pty Ltd and Dura (Australia) Constructions Pty Ltd between 2011 and 2013.
Mr Traianedes' list of failings was long, and included making false and misleading statements to the ATO as to whether funds were likely to be available to pay debts due to the ATO, among a raft of other things.
Other findings included that Mr Traianedes made inadequate Declarations of Independence, Relevant Relationships and Indemnities to creditors, drew remuneration beyond the amount approved by the creditors with respect to two liquidations, and lodged several forms 524 with ASIC that were false and misleading in that they stated that Mr Traianedes had not received any remuneration when he had.
He also failed to keep proper books and records, inaccurately reported to creditors, and failed to exercise reasonable care in forming an opinion as to whether company books and records were adequate.
Finally, he improperly convened a committee of inspection meeting and improperly proposed a resolution to fix his remuneration, improperly sought to retain his appointment as liquidator after a creditor raised concerns about his independence and impartiality, and failed to carry out his duties with an appropriate degree of independence and impartiality insofar as he solicited proxies from creditors.
In addition to his suspension, the Board ordered that Mr Traianedes pay ASIC's costs, bear the costs of the appointment of replacement liquidators to his external administrations, and ensure that his first 10 appointments upon the expiry of the suspension period are undertaken jointly and severally with another registered liquidator.
These orders took effect on 12 December 2016.
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