Registered Liquidators

Engaging with any external insolvency or administration matter requires the expertise of a registered liquidator, as these professionals are uniquely qualified to handle such complex issues. A registered liquidator is an individual who has been officially registered under the Corporations Act 2001 in Australia. Upon registration, they are assigned a unique registered Liquidator number and subsequently included in the ASIC’s registry of liquidators.

Serving in a fiduciary capacity, registered liquidators assume complete control over the affairs, assets, and finances of a corporate body. This extensive authority ensures they are capable of managing the intricacies of insolvency and administration proceedings with due diligence and professional care. Their role is crucial in maintaining the integrity and efficiency of such processes.

Becoming a registered liquidator

The process of becoming a registered liquidator is managed by ASIC, necessitating a detailed physical application from any prospective candidate. The number of applicants for this profession is relatively small, which is why there’s currently no option for online applications. It’s crucial to ensure your application adheres to the required format; it must include all necessary details, explanations, and supporting statements in the designated form. Upon acceptance of your application by ASIC, an invoice for the associated fee will be issued.

Adherence to the approved application format is paramount, as only applications meeting these specifications will be considered by the review committee. This committee evaluates your application and, upon satisfactory fulfillment of all requirements, grants your registration as a liquidator. One of the key prerequisites for approval is providing written evidence of holding appropriate and adequate professional indemnity and fidelity insurance. Such protection safeguards you from potential liabilities arising from the performance of your duties.

Once registered, you’ll receive a certificate confirming your status as a registered liquidator. This registration remains valid for three years, after which a renewal is necessary to continue practising in this capacity.

Obligations

Registered liquidators are subject to certain statutory and regulatory obligations, with compliance necessary to maintain their status. The general obligations stipulate that liquidators should maintain a fit and proper conduct, perform their duties appropriately and efficiently, continue to reside in Australia, and avoid insolvency. Beyond these, there are specific regulations tailored to certain roles of a liquidator, including:

  • Annual General Meetings and Financial Reporting: You must uphold your responsibilities concerning these meetings and provide accurate financial reports.
  • Lodging Documents and Reporting Matters: Submit all necessary documents to the appropriate bodies and report any significant issues.
  • Lodging Unclaimed Money: Any unclaimed money under your administration should be appropriately lodged.
  • Insurance: Maintain appropriate and adequate professional indemnity and fidelity insurance.

These obligations, along with others that might vary depending on the circumstances, should align with the provisions of the Corporation Act.

As a registered liquidator, you may be granted relief from certain obligations. This relief, either as a class order or individual relief, could exempt you from specific duties without attracting sanctions. For instance, certain externally-administered companies might be exempt from holding annual general meetings and producing financial reports.

You have the flexibility to alter or cancel your liquidator registration. For example, if certain details such as your address change, you can lodge a specific form with ASIC to update them on the change.

 

Here are some resources that can provide further information on the role and responsibilities of a registered liquidator

 

1. Australian Securities & Investments Commission (ASIC) – Registered liquidators

2. Australian Restructuring Insolvency & Turnaround Association (ARITA)

3. Insolvency Practitioners Association (IPA) of Australia

4. ASIC Regulatory Portal

5. Australian Financial Security Authority (AFSA) – Insolvency

Please note that it is important to cross-check any information provided on these sites as the landscape of legal and financial regulations can often change.