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The Companies Auditors and Liquidators Disciplinary Board (CALDB) has reprimanded a registered liquidator, following an application from ASIC alleging that he failed to perform adequately and properly the duties of a liquidator.
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CALDB 'admonishes' registered liquidator
29 June 2015
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9 minute read
The CALDB admonished registered liquidator Jonathan Paul McLeod, who practises in Brisbane.
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In an application to the CALDB, ASIC alleged that Mr McLeod failed to carry out or perform adequately and properly the duties of a liquidator within the meaning of s.1292(2)(d) of the Corporations Act 2001 and was not a fit and proper person to remain registered as a liquidator within the meaning of that section of the Corporations Act.
ASIC relied upon 24 contentions, 13 of which were established. The regulator withdrew four of the contentions during the hearing of the matter.
Based on the 13 contentions, the board was satisfied that Mr McLeod, variously and in respect of several company administrations or liquidations, was involved in:
(i) failing to lodge with ASIC a report as required by s.438D(1) regarding suspected offences as soon as practicable after the administrator became aware of such conduct (numerous omissions);
(ii) not providing a remuneration report to relevant creditors pursuant to s.449E of the Corporations Act;
(iii) various failures to make proper declarations of indemnities and relevant relationships to relevant creditors;
(iv) failing to properly consider whether he was disqualified from consenting to act as a liquidator in circumstances where he had previously held a position of officer of the relevant company within 2 years of his appointment as liquidator; and
(v) failing to open a liquidator’s general account within the specified 7 day period in compliance with Regulation 5.6.06(1) of the Corporations Act.
In deciding the appropriate sanction in this matter, CALDB said it took account of the fact that coincidentally, within the period over which the contraventions that were established occurred, Mr McLeod was diagnosed with and received treatment for a serious illness.
“It was also relevant that Mr McLeod had not engaged in any deliberate or dishonest conduct [and] had adopted a cooperative approach throughout the proceedings before CALDB, including making early admissions in respect of the omissions established and had provided evidence to the Board that he had implemented processes and procedures to address the deficiencies identified.
“In CALDB's view, the exercise of its protective function in the particular circumstances of this matter required an order to be made admonishing Mr McLeod as a reproof to Mr McLeod for the lapses established while also serving the public interest as a reminder to the insolvency profession generally that registered liquidators who may find themselves in a similar situation cannot ignore the likelihood that their ability to carry out their professional duties to the standard required will be affected and they must address the need to put appropriate arrangements in place to uphold the high level of responsibility they have assumed to carry out their duties as a liquidator registered under the Corporations Act adequately and properly at all times,” the board said.
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