Richard Abarran was suspendered for 9 months back in 2008.
Did Equitrust LTD check to see if they had appointed a shonk as their administrator????
Equititrust Limited Appoints Hall Chadwick as Administrators
Equititrust Limited Appoints Hall Chadwick as Administrators.pdf
HALL CHADWICK APPOINTED AS ADMINISTRATORS OF EQUITITRUST LIMITED
(ADMINISTRATORS APPOINTED)
(ADMINISTRATORS APPOINTED)
17 February 2012:
As you may be aware, on Wednesday, 15 February 2012 the board of directors of Equititrust Limited (as trustee of the Equititrust Income Fund) appointed Richard Albarran, Blair Pleash and Glen Oldham of Hall Chadwick Chartered Accountants as Voluntary Administrators.
The Objective of the Voluntary Administration provisions of the Corporation Act 2001 is to;
- Maximise the chances of the company or as much as possible of its business continuing in existence;
- If that is not possible, provide for a better return for the Company’s creditors and members than would result from an immediate winding up of the company.
The Administrators are aware that the Company has experienced a number of compliance issues recently.
The Administrators are looking to work with all stakeholders to enable those issues to be resolved and develop an effective strategy to maximise the available return for all stakeholders.
An initial meeting of creditors in the Voluntary Administration has been scheduled for Monday, 27th February 2012 at the Gold Coast Convention Centre, Broad Beach at 11am (EST).
At that meeting the Administrators will detail the results of their investigations to date and provide preliminary details with respect to the future conduct of the Administration.
Richard AlbarranBlair Pleash
Glen Oldham
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Mr Albarrans appears to be a lazzarus of the trustee world.
contempt after he refused to answer dozens of questions at a disciplinary hearing held more than a year ago.
Richard Albarran, who has also been suspended from working as a liquidator for nine months, appeared before the Companies Auditors and Liquidators Disciplinary Board in February last year. He had refused to answer 37 questions, saying the answers could harm his legal case in the Administrative Appeals Tribunal, where he was appealing against a previous slap on the wrist by the board. He later said he had not answered because his lawyer had told him he should not.
Both disciplinary actions were brought over his work in acting as administrator of a company, Formula Engineering, when he should not have taken them as a client because of a conflict of interest.
The board's hearings were held in secret, so it was not until this year that the scope of Mr Albarran's actions was made public.
Mr Albarran unsuccessfully fought the impending suspension of his registration as a liquidator all the way to the High Court, arguing that it was unconstitutional for administrative bodies to exercise Commonwealth judicial power.
After Mr Albarran had failed to overturn the board's suspension of his licence, a Federal Court judge, Peter Jacobson, found that his refusal to answer questions asked by the board was an act of "wilful and a deliberate and stubborn defiance".
The fine was ordered partly because he had failed to show contrition.
Sydney liquidator suspended
Tuesday 15 January 2008
The Companies Auditors and Liquidators Disciplinary Board (the Board or the CALDB) has suspended Mr Richard Albarran’s registration as a liquidator for nine months. The suspension follows Mr Albarran’s written notification to the Administrative Appeals Tribunal (AAT) requesting his application for a review of the CALDB decision to suspend his registration be withdrawn. The effect of that notification is that the AAT has dismissed Mr Albarran's review application without proceeding to review the Board’s decision.
Mr Albarran’s suspension commences on 16 March 2008 in order to enable him to resign from all his existing appointments and to enable replacement external administrators to be appointed with minimum disruption to creditors.
Following an application by ASIC, the Board suspended Mr Albarran’s registration after finding he failed to carry out or perform adequately and properly duties or functions required of a registered liquidator under Australian law. The Board’s orders were stayed pending Mr Albarran’s appeal to the AAT.
Specifically, the Board found that in circumstances where he and members of his firm (Hall Chadwick) were prohibited by professional standards from accepting an appointment as administrator of Formula Engineering Pty Limited (Formula) – due to a prior professional relationship that his firm had with Formula – Mr Albarran participated in separate arrangements with sole practitioner, Mr Andrew Ashton, and Mr James Smiles, then of Smiles, Poulos & Associates, whereby Mr Albarran and persons from his firm performed functions of an administrator or administrator of a deed of company arrangement. Those functions had been outsourced to Hall Chadwick by Messrs Ashton and Smiles during the respective periods when each of them was the appointed external administrator of Formula.
The Board stated that ‘a reasonably competent practitioner would know not to and would not accept an engagement to perform by means of a contrivance functions which he was prohibited from performing as an appointed administrator’, and further, that Mr Albarran ‘has committed breaches of professional obligations which show a significant lack of appreciation of the purpose and scope of accepted standards of professional conduct relating to independence and objectivity.’
ASIC’s application to the CALDB regarding Mr Albarran reflected the importance placed by ASIC on professional independence for both the integrity of financial markets and protection of creditors. Recent amendments to the Corporations Act address these issues by now requiring administrators, and liquidators in a voluntary liquidation, to send to creditors with the notice of the first meeting, a declaration concerning any ‘relevant relationships’ or indemnities. The Insolvency Practitioners Association recently re-issued its Code of Professional Practice for Insolvency Professionals which also now addresses in detail independence, integrity, objectivity and impartiality.
The CALDB is an independent statutory body given functions and powers under the Corporations Act. The Board’s disciplinary responsibilities pursuant to the Act are intended to provide an incentive to registered auditors and liquidators to maintain high professional standards. The Board also has a public protective and educative role by virtue of its jurisdiction to cancel or suspend the registration of an auditor or liquidator.
Background
6 January 2005 ASIC files the CALDB application
20 July 2005 Mr Albarran files summons in High Court challenging constitutionality of the CALDB. Also seeks a stay of the CALDB proceedings pending outcome of High Court constitutional challenge to the CALDB.
15 August 2005 High Court dismisses summons filed on 20 July 2005, remits the proceeding to the Federal Court and refuses stay of the CALDB proceedings.
3 May 2006 The CALDB hands down decision suspending Mr Albarran’s registration as liquidator for nine months.
8 May 2006 Mr Albarran files at the AAT application for review of the CALDB decision. Also files an application for stay of the CALDB’s decision pending outcome of review application.
16 May 2006 AAT grants stay of the CALDB decision until review application is determined by the AAT.
19 May 2006 The Full Federal Court dismisses the application and upholds the CALDB’s constitutionality (MR 06-161 refers).
15 June 2006 Mr Albarran applies for special leave to appeal from the Full Federal Court judgement of 19 May 2005.
29 September 2006 Crennan & Heydon JJ of High Court grant application for special leave.
24 May 2007 High Court unanimously dismisses constitutional challenge to the CALDB (MR 07-143).
19 December 2007 Mr Albarran lodged written notification at the AAT requesting that his application for review of the CALDB decision to suspend his registration as a liquidator for nine months be withdrawn.
20 December 2007 AAT officially notifies ASIC by letter of this date that Mr Albarran’s application for review was finalised by being dismissed on 19 December 2007.
15 January 2008 Notice of CALDB’s decision is given to Mr Albarran, suspension to commence 60 days from this day.
16 March 2008 Mr Albarran’s nine month period of suspension commences.
contempt after he refused to answer dozens of questions at a disciplinary hearing held more than a year ago.
Richard Albarran, who has also been suspended from working as a liquidator for nine months, appeared before the Companies Auditors and Liquidators Disciplinary Board in February last year. He had refused to answer 37 questions, saying the answers could harm his legal case in the Administrative Appeals Tribunal, where he was appealing against a previous slap on the wrist by the board. He later said he had not answered because his lawyer had told him he should not.
Both disciplinary actions were brought over his work in acting as administrator of a company, Formula Engineering, when he should not have taken them as a client because of a conflict of interest.
The board's hearings were held in secret, so it was not until this year that the scope of Mr Albarran's actions was made public.
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The board chairman, Donald Margarey, found at the end of the hearing that Mr Albarran's lack of disclosure meant the board was left to make what it could of the "patchwork quilt" of his answers.Mr Albarran unsuccessfully fought the impending suspension of his registration as a liquidator all the way to the High Court, arguing that it was unconstitutional for administrative bodies to exercise Commonwealth judicial power.
After Mr Albarran had failed to overturn the board's suspension of his licence, a Federal Court judge, Peter Jacobson, found that his refusal to answer questions asked by the board was an act of "wilful and a deliberate and stubborn defiance".
The fine was ordered partly because he had failed to show contrition.
Sydney liquidator suspended
Tuesday 15 January 2008
The Companies Auditors and Liquidators Disciplinary Board (the Board or the CALDB) has suspended Mr Richard Albarran’s registration as a liquidator for nine months. The suspension follows Mr Albarran’s written notification to the Administrative Appeals Tribunal (AAT) requesting his application for a review of the CALDB decision to suspend his registration be withdrawn. The effect of that notification is that the AAT has dismissed Mr Albarran's review application without proceeding to review the Board’s decision.
Mr Albarran’s suspension commences on 16 March 2008 in order to enable him to resign from all his existing appointments and to enable replacement external administrators to be appointed with minimum disruption to creditors.
Following an application by ASIC, the Board suspended Mr Albarran’s registration after finding he failed to carry out or perform adequately and properly duties or functions required of a registered liquidator under Australian law. The Board’s orders were stayed pending Mr Albarran’s appeal to the AAT.
Specifically, the Board found that in circumstances where he and members of his firm (Hall Chadwick) were prohibited by professional standards from accepting an appointment as administrator of Formula Engineering Pty Limited (Formula) – due to a prior professional relationship that his firm had with Formula – Mr Albarran participated in separate arrangements with sole practitioner, Mr Andrew Ashton, and Mr James Smiles, then of Smiles, Poulos & Associates, whereby Mr Albarran and persons from his firm performed functions of an administrator or administrator of a deed of company arrangement. Those functions had been outsourced to Hall Chadwick by Messrs Ashton and Smiles during the respective periods when each of them was the appointed external administrator of Formula.
The Board stated that ‘a reasonably competent practitioner would know not to and would not accept an engagement to perform by means of a contrivance functions which he was prohibited from performing as an appointed administrator’, and further, that Mr Albarran ‘has committed breaches of professional obligations which show a significant lack of appreciation of the purpose and scope of accepted standards of professional conduct relating to independence and objectivity.’
ASIC’s application to the CALDB regarding Mr Albarran reflected the importance placed by ASIC on professional independence for both the integrity of financial markets and protection of creditors. Recent amendments to the Corporations Act address these issues by now requiring administrators, and liquidators in a voluntary liquidation, to send to creditors with the notice of the first meeting, a declaration concerning any ‘relevant relationships’ or indemnities. The Insolvency Practitioners Association recently re-issued its Code of Professional Practice for Insolvency Professionals which also now addresses in detail independence, integrity, objectivity and impartiality.
The CALDB is an independent statutory body given functions and powers under the Corporations Act. The Board’s disciplinary responsibilities pursuant to the Act are intended to provide an incentive to registered auditors and liquidators to maintain high professional standards. The Board also has a public protective and educative role by virtue of its jurisdiction to cancel or suspend the registration of an auditor or liquidator.
Background
6 January 2005 ASIC files the CALDB application
20 July 2005 Mr Albarran files summons in High Court challenging constitutionality of the CALDB. Also seeks a stay of the CALDB proceedings pending outcome of High Court constitutional challenge to the CALDB.
15 August 2005 High Court dismisses summons filed on 20 July 2005, remits the proceeding to the Federal Court and refuses stay of the CALDB proceedings.
3 May 2006 The CALDB hands down decision suspending Mr Albarran’s registration as liquidator for nine months.
8 May 2006 Mr Albarran files at the AAT application for review of the CALDB decision. Also files an application for stay of the CALDB’s decision pending outcome of review application.
16 May 2006 AAT grants stay of the CALDB decision until review application is determined by the AAT.
19 May 2006 The Full Federal Court dismisses the application and upholds the CALDB’s constitutionality (MR 06-161 refers).
15 June 2006 Mr Albarran applies for special leave to appeal from the Full Federal Court judgement of 19 May 2005.
29 September 2006 Crennan & Heydon JJ of High Court grant application for special leave.
24 May 2007 High Court unanimously dismisses constitutional challenge to the CALDB (MR 07-143).
19 December 2007 Mr Albarran lodged written notification at the AAT requesting that his application for review of the CALDB decision to suspend his registration as a liquidator for nine months be withdrawn.
20 December 2007 AAT officially notifies ASIC by letter of this date that Mr Albarran’s application for review was finalised by being dismissed on 19 December 2007.
15 January 2008 Notice of CALDB’s decision is given to Mr Albarran, suspension to commence 60 days from this day.
16 March 2008 Mr Albarran’s nine month period of suspension commences.
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