Liquidator banned

Andrew Dunner is an insolvency specialist from Melbourne who was banned from serving as a registered liquidator after a Federal Court case about his conduct as liquidator and controller of 12 companies.

The court banned him for five years — the judgment said he should be barred from serving as a registered liquidator until February 2018.

Justice John Middleton found Mr Dunner had “failed to satisfy the high standards of conduct required of his offices,” describing his actions as indicating a “systemic failure of administration and internal protocols” and “extremely poor professional judgment.”

The Australian Securities and Investments Commission (ASIC) alleged Mr Dunner drew remuneration of more than $600,000 without appropriate approval or adequate supporting documentation.

The judge said Mr Dunner should repay a determined amount, but the article does not specify how much or the timing — it only states he should repay an amount to be determined.

According to the article there are 681 registered liquidators in Australia. They hold a privileged position of trust as officers of the court and are appointed by judges.

After the ruling, Mr Dunner said he had cooperated with ASIC but that his reputation had been ruined. ASIC commissioner John Price said Mr Dunner’s “behaviour fell well short of acceptable standards of conduct.”

The case highlights that registered liquidators are subject to regulatory scrutiny and can be banned by the Federal Court for failing professional standards — an important reminder that insolvency officers hold a privileged position of trust and their conduct can materially affect creditors and stakeholders.