Directors - Role assisting external administrator or receiver
Generally, directors have an obligation to assist the external administrator or receiver by:
advising the external administrator or receiver of the location of company property and delivering any such property in their possession to the external administrator or receiver
providing the company’s books and records to the external administrator (voluntary administration and liquidation) or giving access to the books and records to the external administrator (receivership)
advising the external administrator of the whereabouts of other company records
providing a written report about the company’s business, property and financial circumstances (a Report on Company Activities and Property or 'ROCAP') within either 5 business days (voluntary administration and creditors' voluntary winding up), or 14 days (receivership and court liquidation) of the appointment of the external administrator, and
meeting with, or reporting to, the external administrator to help them with their inquiries, as reasonably required.
Directors, officers and other people with relevant books and records have a responsibility to the company and to creditors, and must not obstruct external administrators or receivers in carrying out their duties.
Where a company officer fails to comply with their responsibilities, the external administrator may refer the matter to ASIC. Such referrals have frequently resulted in ASIC taking court action to assist the orderly realisation of assets or to force directors to provide ROCAPs and/or books and records. We regard failure to provide a ROCAP or to disclose and deliver up books and records as a serious breach of the Corporations Act.