Friday 3 November 2006 LAWFUEL – Law News, Law Jobs – Brisbane liquidator, Mr Peter Anthony Lucas, of P.A. Lucas & Co Chartered Accountants, has been reprimanded by the Companies Auditors and Liquidators Disciplinary Board (CALDB) following an application brought by the Australian Securities and Investments Commission (ASIC). Mr Lucas’ reprimand follows the CALDB’s finding that he failed to carry out or perform adequately and properly his duties while receiver and manager of Australian Bath Products Pty Limited (ABP).
Specifically, the CALDB found that Mr Lucas hired staff employed by the insolvency practitioner who had appointed him to ABP in circumstances where the practitioner was prohibited by statute from accepting the appointment as receiver and manager of ABP due to the practitioner’s role as liquidator of the appointer entity. ASIC made an application to the CALDB following concerns that Mr Lucas’ ability to conduct the external administration of ABP in an objective and independent manner may have been compromised due to potential conflicts of interest arising from the arrangements between the two practitioners.
In addition to the reprimand, the CALDB required Mr Lucas to have his practice reviewed by an independent person approved by ASIC in respect to independence and conflict of interest issues, and not to accept any new insolvency appointments for the later of a period of three months, or until he has implemented any recommendations arising from the independent review. Mr Lucas is also required to complete an additional 12 hours of continuing professional development on ethics, conflicts, and independence responsibilities within the next 12 months. ‘The ability of insolvency practitioners to conduct external administrations in an objective and independent manner, free of actual or possible conflicts of interest, is fundamental to the conduct of an external administration. Where ASIC has concerns relating to these issues, appropriate action will be taken’, said ASIC’s Deputy Executive Director of Enforcement , Mr Allen Turton. For further information contact: Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310