ASIC has cancelled the registration of Mr Paul Anthony Pattison, of Melbourne, as a registered liquidator.

ASIC made this decision following orders made on 17 December 2012 in the Federal Court of Australia, which resulted in Mr Pattison becoming a bankrupt.

In a separate decision on 21 January 2013, Mr Pattison was by ASIC disqualified from managing corporations for four years following ASIC enquiries into three failed companies of which he was the sole director. These companies had combined deficiencies of over $4.7 million.

Mr Pattison has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decisions.

Background

Mr Pattison operated an insolvency and advisory practice firstly through a company formerly called Pattison Consulting Pty Ltd (Pattison Consulting), and later through another company called Pattisons Business Recovery & Insolvency Specialists Pty Ltd (PBRIS).

A third company, Pattisons Australia Pty Ltd (Pattisons Australia), sub-leased business premises to Pattison Consulting.

On 29 September 2010 a liquidator was appointed to Pattisons Australia, with the company owing $150,333.58 to unsecured creditors.

On 7 December 2010 a liquidator was appointed to Pattison Consulting, with the company owing $3,579,215 to unsecured creditors.

On 7 March 2011 a liquidator was appointed to PBRIS, with the company owing $1,086,939.81 to unsecured creditors.

The Corporations Act provides that ASIC may disqualify a person from managing corporations for up to 5 years if:

• the person has been an officer of 2 or more corporations; and

• while the person was an officer, or within 12 months after the person ceased to be an officer of those corporations, each of the corporations was wound up and a liquidator lodged a report with ASIC about the corporations' inability to pay its debts.

On 28 February 2011, Mr Pattison consented to orders in the Supreme Court appointing replacement liquidators to 80 companies which were formerly administered by him, and gave undertakings to the court to cease to act, or accept any new appointments as a registered liquidator. (refer: 11-35AD).

Mr Pattison had been registered as a liquidator since May 2004 and an official liquidator since October 1992.

Under section 1290A(1) of the Corporations Act 2001, ASIC may cancel the registration of a liquidator if a person becomes insolvent under administration.

ASIC’s Regulatory Guide 186 External administration: Liquidator registration (RG 186) outlines the ongoing obligations of registered liquidators under the Corporations Act, and ASIC’s approach to what a person must do to remain registered as a liquidator.

Editor's note 1:

On 21 February 2013, ASIC received Mr Pattison's application to the Administrative Appeals Tribunal for a review of ASIC's decision to disqualify him from managing a corporation for four years.

Editor's note 2:

On 6 March 2013, ASIC received Mr Pattison's application to the Administrative Appeals Tribunal for a review of ASIC's decision to cancel his registration as a liquidator.

Editor's note 3:

On 5 March 2014, ASIC received notification from the Administrative Appeals Tribunal that the hearing date for the above matter has been set down for 16-20 June 2014. The hearing is in respect of for both appeal proceedings.

Editor’s note 4:

On 20 June 2014, Mr Pattison’s four-year disqualification from managing corporations was reduced to three years by consent (refer: 14-139MR).

On 20 June 2014, AAT orders were made with the consent of Mr Pattison and ASIC dismissing Mr Pattison’s application to review ASIC’s decision to cancel his registration as a registered liquidator.