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16-453MR Victorian liquidator suspended
The Companies Auditors and Liquidators Disciplinary Board has suspended the registration of Mr Stan Traianedes, of Box Hill, Victoria as a registered liquidator for three years following an application by ASIC.
The Board also ordered that Mr Traianedes pay ASIC's costs and give various undertakings, including that:
- he bear the costs of and incidental to the appointment of replacement liquidators to his external administrations;
- upon the expiry of the suspension period, his first ten appointments will be undertaken jointly and severally with another registered liquidator;
- if, during the period of three years following the expiry of the suspension period, he commences practice as a sole practitioner, he will have all template, checklist and procedure documents used in his practice reviewed by an ASIC-approved reviewer, and report to ASIC on the reviewer's recommendations and steps taken to implement them; and
- he will undertake further educational training.
The Board found that Mr Traianedes, a sole practitioner trading under the name S & Z Insolvency and Forensic, failed to adequately and properly carry out his duties as a liquidator in relation to the external administration of Farr Enterprises Pty Ltd, B K Diesel Pty Ltd and Dura (Australia) Constructions Pty Ltd between 2011 and 2013. A copy of the Board’s 'Reasons for Decision', together with a copy of the undertakings provided by Mr Traianedes to the Board and to ASIC, can be found on the Board’s website at www.caldb.gov.au.
ASIC brought the application against Mr Traianedes after its investigation found various failings in the performance of his duties. The Board found that Mr Traianedes:
- made inadequate Declarations of Independence, Relevant Relationships and Indemnities to creditors;
- made false and misleading statements to the Australian Tax Office (ATO) as to whether funds were likely to be available to pay debts due to the ATO;
- drew remuneration beyond the amount approved by the creditors with respect to two liquidations;
- lodged several forms 524 with ASIC that were false and misleading in that they stated that Mr Traianedes had not received any remuneration when he had;
- failed to keep proper books and records, including a failure to maintain written records in accordance with the then applicable IPA Code that evidenced compliance with appropriate independence procedures within his practice;
- inaccurately reported to creditors;
- failed to exercise reasonable care in forming an opinion as to whether company books and records were adequate;
- improperly convened a committee of inspection meeting and improperly proposed a resolution to fix his remuneration;
- improperly sought to retain his appointment as liquidator after a creditor raised concerns about his independence and impartiality; and
- failed to carry out his duties with an appropriate degree of independence and impartiality insofar as he solicited proxies from creditors.
The Board’s order suspending Mr Traianedes' registration takes effect on 9 January 2017. The remainder of the Board's orders took effect on 12 December 2016.