Project: Official liquidations
Official liquidators can still be obliged to take court appointed liquidations, under ASIC imposed requirements. The 2013 report of Amanda Phillips, an accountant of Ferrier Hodgson, sheds much light on how few funds there are in such appointments, such that official liquidators are underfunded both in relation to the paid disbursements and their remuneration, to the tune of $42 million.
Practitioners are obliged to properly investigate and report on court ordered liquidations, whatever the level of assets and funds available. Amanda recommends a number of options, including government funding. In the end result, when the status of official liquidators is removed, as foreshadowed by the government, many court appointed windings up may only be possible if there is no external funding or indemnity.
Amanda’s report has been the subject of close attention by policy makers and law reform agencies, and was referred to by ARITA in its 2014 submission to the UK Insolvency Service on proposed changes to practitioner fee arrangements.