Liquidators – how to check their registrations and credentials
Considering appointing a Liquidator and want to check on a Liquidator’s registrations and credentials. It’s easy and can be done online. So why am I telling you this? Because, there are a few tricks to be aware of.
First – Check the CVs of the liquidator and the company the liquidator works for.
I own and run Dissolve which is a specialist company liquidation firm. You can learn more about Dissolve and me here.
Second – What is the name of the proposed Liquidator?
That is, you will be appointing an individual, not a company. By way of example, if you appoint at Dissolve, the individual who will be the Registered Liquidator is me, Clifford Sanderson. “Obviously”, I hear you say, if you’ve searched for a liquidator then the companies and websites you find will have a liquidator. Nope!
Trap – there are some “marketing advisers” that “sell” liquidations – they give advice, sometimes poor advice, make promises, obtain the full fee from you then find a liquidator, and pay him a portion of the fee you paid. There is no way for you to have any comeback against that “marketing adviser” because you don’t actually appoint them. You’re just sending them money.
Third – Check with ASIC that the proposed appointee is a Registered Liquidator.
ASIC is the government authority that has overall responsibility to register, supervise and, where necessary, discipline Registered Liquidators. A Registered Liquidator must have many years of experience, appropriate qualifications and abide by a number of laws regarding disclosure and conduct. You can check out the proposed appointee’s registration on the ASIC website. If you go direct to the Professional Registers page you can search under Name and under the Register select Registered Liquidator.
Fourth – Check the proposed liquidator is a member of the Insolvency Practitioners Association of Australia (“IPA”).
The IPA is the peak professional body for insolvency practitioners. The IPA has very high requirements for membership and a wide range of ethical requirements and ongoing study which members must meet. The IPA’s requirements include and exceed the requirements of ASIC. So you can go to the Insolvency Practitioners Association website and search under the name “Sanderson” to verify my membership, or the membership of anyone else. Did I hear you say “obviously” again?….
Trick – some Registered Liquidators are not members of the IPA so do not need to comply with the higher requirements of the IPA.
So, my message is, always check the name of the proposed liquidator and check their professional memberships.