Failure or refusal to convene a meeting of creditors in accordance with the request of a major creditor

The IPA has undertaken an investigation of a concern regarding a member's failure or refusal to convene a meeting of creditors in accordance with the request of a major creditor pursuant to section 64(1)(b) of the Bankruptcy Act 1966.   The investigation followed  the decision in Liprini v Pascoe as Trustee of the Bankrupt Estate of Liprini [2012] FCA  886.

In accordance with regulation 14 of the IPA Regulations, the IPA's Professional Conduct Committee determined that some or all of the concern was substantiated but that the matter had already been addressed by the court and no further action was appropriate.

This determination was considered appropriate for the following reasons:
  • the member acknowledged the breach;
  • the member claimed, and the court supported, that he acted honestly; and
  • the penalty applied by the court sufficient addressed the breach.