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Insolvency and related law and policy, and more

Michael Murray is an Australian author and commentator on corporate and personal insolvency law and related issues, in Australia and internationally. He has a strong law and policy background, is independent of any connections, and his views are his own. He gives no legal advice. 

Liquidator’s registration cancelled by ASIC

A company liquidator has had her registration cancelled following a decision by a statutory disciplinary committee that she had improperly used her position, falsified books and misappropriated over $238,500 from four liquidations over a period of time and was thereby not a fit and proper person to remain registered.

See Report of committee convened to make a disciplinary decision about Amanda Young, a registered liquidator, 3 June 2020.

The Committee noted Ms Young,’…took deliberate steps to conceal her actions, including falsifying official documents and misleading and deceiving her colleagues.’

She did not appear before the Committee and the hearing was conducted in her absence.

ASIC reports this as a

“timely reminder to all registered liquidator practices to regularly review their systems and processes, particularly [their] fraud prevention and detection measures”.

There may be some concern from ASIC, and from AFSA, about the potential for internal fraud within insolvency firms during the difficult practice conditions caused by the Coronavirus shutdown and what is reported to be the financial pressures on insolvency practices.

ASIC had earlier, on 18 December 2018, suspended her registration as a liquidator at her request. She agreed to resign from all her external administration appointments and replacement liquidators were appointed from her former firm: In the matter of FGM Print Pty Ltd and other Companies [2018] NSWSC 1983. Continuing orders were also made by the Supreme Court restraining her from leaving or attempting to leave Australia: In the matter of Amanda Young [2018] NSWSC 2012.

Other consequences for Ms Young are not known.

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