January 2014 – ░░░ INSOLVENCY INTERFACE

Compliance by personal insolvency practitioners in 2012-13

Debt Administration, Insolvency practices, Insolvency Statistics, Personal Bankruptcy, Regulation, Standards Comments Off

Jan 242014

A Federal Government report on compliance by insolvency practitioners who work in the field of personal bankruptcy and insolvency, and are governed under the Bankruptcy Act 1966, was released on 16 January 2014. The 29 page report, published by Australian Financial Security Authority (AFSA), is titled

“Personal insolvency practitioners compliance report 2012-13”.

The phrase “personal insolvency practitioners” refers to Registered Trustees in Bankruptcy and Registered Debt Agreement Administrators.

A list of the CONTENTS is published below. For a copy of the report (PDF) CLICK HERE.

Free Insolvency & Recovery Services Directory

Corporate Insolvency, Debt Administration, Industry People, Insolvency Consultants, Personal Bankruptcy, Services Directory Comments Off

Jan 142014

On the Insolvency Interface blog site menu

I have created a directory facility for insolvency practitioners, lawyers and other consultants that provide specialist insolvency and recovery services (corporate and personal) to list their names and contact details. This facility is available free of charge and obligation free until 30 June 2014.

Just click on the menu item “Insolvency & Recovery Services Directory” (above).

Then on “Submit a Listing”, and follow the prompts. You will be asked to enter your category of service, business name, location, phone number, and a description of your services. You can also supply certain other information if you like, such as your web site address.

Visitors will be able search the directory by business name, category of service, location, etc.

Peter Keenan 14/1/2014

UK directors disqualified for failing to maintain adequate accounting records

Corporate Insolvency, Insolvency Law, Insolvency practices, Records Management, Regulation, White collar crime Comments Off

Jan 102014

Encouraging news. According to an article published on insolvencynews.com on 9 January 2014, the United Kingdom insolvency authority has banned the directors of two unrelated companies from acting as company directors for failing to maintain adequate accounting records:

“The directors of two unrelated companies have been banned from acting as company directors for failing to maintain adequate accounting records.

The disqualifications, which followed investigations by The (UK) Insolvency Service, were handed to Bradley Carter of Dr Spafish Limited, and Alan Coffey of Datadesk Computer Services Limited.

Carter, whose company offered fish pedicures and also sold franchises, was banned for seven years. Spafish began trading in August 2010 and went into liquidation on 28 November 2011, owing £788,968 to creditors.

The investigation found that due to the lack of available accounting records, it was unable to determine the company’s turnover, who benefitted from cheques and cash worth £181,953 withdrawn from the company’s bank account, and what happened to £68,100 received as part payments for franchise.

Neither was it possible for the investigation to determine the full extent of losses incurred by customers or who these customers were.

Mark Bruce, a chief examiner at The Insolvency Service said: “Company directors must keep sufficient financial records that show and explain the company’s transactions.

“This director failed to do this and there remain a large number of unexplained transactions, representing significant amounts, over the company’s trading period.”

Coffery of Datadesk Computer Services, which operated as supplier of office and technology equipment, was also disqualified for seven years, at Airdrie Sheriff Court in Scotland.

The investigation found that the lack of proper accounting records meant it was not possible to verify if £312,266 paid out of the bank account was for the benefit of the company.

This included over £123,141 paid to a company which holds petroleum exploration and extraction rights in Sierra Leone, West Africa and £26,000 paid for the purchase of coffee and related products. In addition, there were unexplained cheque payments totalling £79,038.

The company entered liquidation on 3 February 2012.

Robert Clarke, head of insolvent investigations north, at The Insolvency Service, said: “The lack of records in this case made it impossible to determine whether there was other, more serious, misconduct at Datadesk and that is reflected in the lengthy period of disqualification.”

Liquidators’ professional association has new name and new head

Corporate Insolvency, Industry People, Insolvency practices, Personal Bankruptcy, Practitioners Association (IPAA) Comments Off

Jan 092014

It’s been announced today that from January 2014 the Insolvency Practitioners Association of Australia (IPAA) will be known as the Australian Restructuring, Insolvency & Turnaround Association (ARITA), and that from February 2014 the CEO of the association will be John Winter, former head of a professional association of accountants and a person with “an extensive background in media”.

In a notice to members, Denise North, current CEO of IPAA/ARITA, said she was “delighted to report that our new name and brand are now in place” and invited members to visit the association at arita.com.au

ARITA is being described as “the peak professional body in Australia for company liquidators, bankruptcy trustees, lawyers, financiers and academics involved in restructuring, insolvency and turnaround activity. It provides advice and assistance to its members on insolvency law and practice, gives advice to government on law reform, and generally represents the interests of those in the insolvency profession.”

John Winter’s career and specialities are detailed on his LinkedIn page.