Make sure of the proposed liquidator’s registrations and qualifications
Before you appoint anyone as a liquidator we recommend you check out their credentials with ASIC and with other independent regulatory bodies.
Check the CVs of the liquidator and the company the liquidator works for.
Our liquidator, Cliff Sanderson, owns and runs Dissolve which is a specialist company liquidation firm. Cliff has over 25 years of insolvency experience including partnership at Ernst & Young. He is a Registered Liquidator (155400), Chartered Accountant, Member of the Australian Restructuring Insolvency & Turnaround Association, Member of the Turnaround Management Association and a Registered Debt Agreement Administrator. He set up Dissolve in 2008 to provide an efficient, low cost company liquidation service. You can learn more about Dissolve and Cliff Sanderson’s background here.
But don’t take our word for it. We’ve given you information and links below on the main things you should check for any liquidator.
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 Clifford Sanderson. Always feel free to ask to speak to Cliff.
Trap – there are some “marketing advisers” that “sell” liquidations – they give advice, sometimes very 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.
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. Here are two links:
Check the proposed liquidator is a member of the Australian Restructuring Insolvency & Turnaround Association (“ARITA”).
ARITA is the peak professional body for insolvency practitioners. ARITA has very high requirements for membership and a wide range of ethical requirements and ongoing study which members must meet. ARITA’s requirements include and exceed the requirements of ASIC. Here is a link to the ARITA website where you can search under the name “Cliff Sanderson” to verify his membership, or the membership of anyone else. www.arita.com.au
Trick – some Registered Liquidators are not members of ARITA so do not need to comply with the higher requirements of ARITA.