Perth liquidator Gary John Anderson will be reprimanded and be supervised for the next ten voluntary administrations to which he is appointed after a decision to suspend his registration was overturned by the Administrative Appeals Tribunal today.
Perth liquidator Gary John Anderson will be reprimanded and be supervised for the next ten voluntary administrations to which he is appointed after a decision to suspend his registration was overturned by the Administrative Appeals Tribunal today.
Mr Anderson appealed an earlier decision by the Companies Auditors and Liquidators Disciplinary Board to suspend his registration for three months and require him to undertake peer reviews, as well as being supervised for his next six administrations, saying the board's finding against him was wrong and that the penalty was excessive.
While the AAT found that the findings, that Mr Anderson failed to carry out his duties as an adminitrator of Flowtime Pty Ltd in 2004, were valid, the penalty was not appropriate.
The AAT affirmed the order made by the CALDB that Mr Anderson pay 85 per cent of the costs incurred by the Australian Securities and Investment Commission in bringing the original claim
The full text of an ASIC announcement is pasted below
The Administrative Appeals Tribunal has varied orders made by the Companies Auditors and Liquidators Disciplinary Board suspending the registration of Perth liquidator, Mr Gary John Anderson.
Mr Anderson is a sole practitioner and practises under the name of Gary Anderson Chartered Accountant. In December 2006, the CALDB made orders suspending Mr Anderson's registration for three months and requiring him to undertake peer reviews. This suspension followed an application by the Australian Securities and Investments Commission relating to Mr Anderson's administration of Flowtime Pty Ltd in 2004.
The CALDB found that Mr Anderson failed to adequately and properly carry out his duties as a liquidator in relation to the voluntary administration of Flowtime, and in particular, that he had failed to:
- properly investigate Flowtime's affairs;
- provide an adequate report to the creditors; and
- properly form an opinion about what would be in the best interests of creditors.
Mr Anderson applied to the AAT for judicial review of the CALDB's decision, alleging that the Board was wrong in finding that he had failed to properly carry out his duties as a liquidator and alleging that even if he had failed to carry out those duties, the penalty imposed was manifestly excessive.
The AAT subsequently affirmed the findings of the CALDB in relation to Mr Anderson's failure to investigate, report and form an opinion during the course of the voluntary administration of Flowtime Pty Ltd. The AAT also noted that Mr Anderson acted consciously in the breach of his duties as a liquidator and that his actions were not a result of oversight, error or mistake.
In relation to Mr Anderson's penalty, the AAT agreed with the CALDB that his conduct was serious and required a substantial penalty. It noted the importance of deterring administrators from consciously breaching their duties. The AAT was of the view, however, that reprimanding Mr Anderson and substituting a longer period of supervision for the period of suspension was appropriate and in the best interests of the public.
Mr Anderson must provide a written report prepared by an independent and experienced registered liquidator, on the adequacy of his investigations, reports and statements prepared for each of the next ten voluntary administrations to which he is appointed.
He must also complete an additional 12 hours of continuing professional development in the area of adequate and proper performance of the duties of an administrator.
The AAT affirmed the order made by the CALDB that Mr Anderson pay 85 per cent of ASIC's costs.
