PCC’s Determination and Reasons for Decision – Korda, Nettleton and Villani as Voluntary Administrators of the Ten Network Holdings Ltd and 13 Associated Entities

01/03/2018

Following the appointment of Mr Korda, Ms Nettleton and Mr Villani (the Administrators) as Voluntary Administrators of the Ten Network Holdings Ltd and 13 associated entities (collectively, the Ten Group) on 14 June 2017, concerns were raised internally within ARITA, and a formal complaint was lodged by an ARITA member.

In accordance with ARITA’s member conduct processes, a Professional Conduct Committee (PCC) was constituted to investigate the appointment of the Administrators to the Ten Group and to determine if any further action was warranted in respect of:

• The initial Declaration of Independence, Relevant Relationships and Indemnities issued by the Administrators, which the court referred to as having "insufficient content"; and
• Actual or perceived independence concerns resulting from the engagement of KordaMentha in relation to the Ten Group prior to the appointment of the Administrators.

To ensure that there were no conflicts or apprehended bias on the part of the PCC, the Committee was reconstituted and chaired by the Hon Dr RP Austin and six other independent persons, some being insolvency practitioners and others being lawyers.

Having regard to the decision in Korda, in the matter of Ten Network Holdings Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2017] FCA 914, the PCC determined that no further action is warranted under article 8 of the ARITA Constitution and rule 5 of the ARITA Regulations.