ob体育 has accepted an enforceable undertaking (EU) from Sydney-based registered liquidator, Mr Clifford John Sanderson of Dissolve Pty Ltd as Trustee for the Dissolve Unit Trust, following an ob体育 review of an external administration that found he failed to adequately and properly discharge his duties as a registered liquidator.
Mr Sanderson has undertaken to:
- engage an independent expert at his own cost to review his insolvency practice and to conduct quality reviews on three external administrations, and
- complete 60 hours of Continuing Professional Development within 12 months including a minimum of 20 hours of CPD relating to insolvency courses provided by ARITA.
ob体育 reviewed Mr Sanderson鈥檚 external administration of Nepean Refrigeration and Air Conditioning Pty Ltd (now deregistered) and found he failed to adequately discharge his duties in that he:
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did not conduct a real property search in circumstances where the director鈥檚 report as to affairs, or the books and records provided to him, did not disclose the company鈥檚 entitlement to any real estate
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did not undertake adequate investigations into the company鈥檚 assets (including real property, plant & equipment and debtors)
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did not prepare, or alternatively, properly document, his assessment of his independence prior to accepting the appointment as external administrator
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did not make requests of the company鈥檚 bookkeeper regarding the company鈥檚 financial affairs
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did not adequately review voidable transactions, including unfair preferences and uncommercial transactions, or alternatively, failed to adequately document that review, and
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did not make a claim against the company鈥檚 director for possible insolvent trading, despite identifying the possibility of such a claim to ob体育 and creditors,, or alternatively, did not properly document his reasons for not taking such action.
ob体育 Commissioner John Price said, 鈥楥reditors have a right to know that liquidators undertake their work independently and competently. ob体育 continues to work with practitioners to improve these aspects of their practices.鈥櫬�
ob体育 acknowledges Mr Sanderson鈥檚 cooperation and notes that he undertook remedial action to address ob体育鈥檚 concerns when ob体育 brought the deficiencies in the discharge of his duties to his attention.