On 21 December 2023, a liquidator disciplinary committee (the Committee) decided that conditions should be imposed on Steven Naidenov, a registered liquidator.聽
In summary, the conditions require that Mr Naidenov arrange for a peer review of six external administrations, at his own cost, over the next two years for which he is an appointed external administrator. The six external administrations will be selected by ob体育.聽
The Committee also decided that ob体育 should direct Mr Naidenov not to accept any further appointments as a liquidator from the date on which a direction is given until 30 April 2024.聽聽
ob体育鈥檚 referral to the Committee alleged Mr Naidenov was not a fit and proper person to be registered as a liquidator, as he had failed to carry out adequately and properly his duties as a liquidator and had contravened the Corporations Act 2001. ob体育 alleged Mr Naidenov used money from an external administration bank account to pay the expenses of other related companies and, in some circumstances, without adequate supporting documentation.聽
In making its decision, the Committee noted Mr Naidenov failed to act with the degree of due care and diligence required. However, the Committee was not satisfied that Mr Naidenov was not a fit and proper person to remain as a registered liquidator.聽聽
The Committee鈥檚 decision reinforced the high standard of conduct expected of registered liquidators and that they must act with care in the protection and administration of creditors鈥� money. One of ob体育鈥檚 enforcement priorities for 2024 is enforcement action targeting gatekeepers facilitating misconduct. This includes registered liquidators.聽聽聽
The Committee also decided that ob体育 should publish the fact of the decision and the Committee鈥檚 report.聽
叠补肠办驳谤辞耻苍诲听
Under Schedule 2 of the Corporations Act 鈥� Insolvency Practice Schedule (Corporations), ob体育 issued Mr Naidenov a 鈥榮how cause notice鈥� asking him to give a written explanation why his liquidator registration should continue. ob体育 considered Mr Naidenov鈥檚 response and was not satisfied with it.聽
Where ob体育 is not satisfied with a response to a 鈥榮how cause notice鈥�, ob体育 may convene a committee to decide whether to take disciplinary action against a registered liquidator.聽
Committees are comprised of an ob体育 staff member, a registered liquidator (nominated by ARITA), and a person nominated by the Minister. ob体育 must give effect to decisions made by liquidator committees.聽
ob体育 must also include particulars of disciplinary action taken against a registered liquidator on the Register of Liquidators. Those particulars include the basis on which ob体育 refers matters to a committee. ob体育 also publishes details on the Registered Liquidator Disciplinary Decisions web page.聽
顿辞飞苍濒辞补诲蝉听
The Committee鈥檚 Report dated 21 December 2023 can be found on the Registered Liquidator Disciplinary Decisions web page.