In 2013 ASIC wrote to all liquidators to announce the commencement of an industry-wide project to test all registered liquidators’ compliance with the requirement to publish certain notices on ASIC’s “published notices website” and to lodge forms with ASIC. ASIC refers to this initiative as the “PNW Project”.
As a result of the PNW Project, ASIC had commenced at least five formal investigations or enforcement actions concerning liquidator conduct by the end of 2015 (see ASIC Report 479: ASIC regulation of registered liquidators). We are aware of several more investigations commenced in 2016.
Based on our experience, it appears that ASIC will foreshadow disciplinary action where it alleges to have identified, as a result of the PNW Project, systematic non-compliance with lodgement requirements by a liquidator. Such disciplinary action may include referral of the matter to the new committee to be established by ASIC (in replacement of the Companies Auditors and Liquidators Disciplinary Board or CALDB), and could ultimately result in suspension of a liquidator’s registration.
Typically, the allegations made by ASIC include (among many others):
In some limited circumstances, we have seen ASIC contend for what we consider to be a novel interpretation of the obligations of a liquidator to lodge or publish certain notices.
As soon as possible:
Having taken the steps outlined above, you will be well-equipped to engage in discussions with ASIC.
Be the first to receive the latest articles, news and publications.
A recent Federal Court decision provides a useful distillation of the key principles that apply to unreasonable director-related transactions under s 588FDA of the Corporations Act.
A Federal Court decision, handed down on Friday, is a blunt reminder that the statutory limitation period in section 588FF(3) of the Corporations Act 2001 (Cth) needs to be adhered to strictly, and...
In this decision, the Court of Appeal of the Supreme Court of NSW considered the interplay between the priority regimes under ss 556 and 561 of the Corporations Act 2001 (Cth) (Act) in resolving a...