On 28 June 2023, a liquidator disciplinary committee (the Committee) decided that Richard Ernst Auricht’s registration as a liquidator should be cancelled.

ASIC’s referral to the Committee alleged Mr Auricht was not a fit and proper person to be registered as a liquidator, as he had failed to carry out adequately and properly his duties as a liquidator by drawing remuneration without creditor or court approval, was not lodging documents with ASIC, and no longer had the required qualifications, experience, knowledge and abilities.

In handing down its decision, the Committee noted that Mr Auricht’s failure to follow proper processes around the drawing of his fees has the potential to bring the entire profession into disrepute. It also noted the requirement for registered liquidators to make a number of lodgements across the course of an appointment, which helps to ensure accountability and transparency of the liquidation process and allows ASIC to perform its regulatory functions. 

The Committee’s decision reinforces the high standard of conduct expected of registered liquidators, including that they have sufficient skills to lodge documents electronically.

In addition to cancelling Mr Auricht’s registration, the Committee also decided that ASIC should publish its report.

ASIC has given effect to that decision by cancelling Mr Auricht’s registration as a liquidator.

View the Committee's report on the Register of Liquidators.

Background

Under Schedule 2 of the Corporations Act – Insolvency Practice Schedule (Corporations), ASIC issued Mr Auricht a ‘show cause notice’ asking him to give a written explanation why his liquidator registration should continue. ASIC considered Mr Auricht’s response and was not satisfied with it.

Where ASIC is not satisfied with a response to a ‘show cause notice’, ASIC may convene a committee to decide whether to take disciplinary action against a registered liquidator.

Committees are comprised of an ASIC staff member, a registered liquidator (nominated by ARITA), and a person nominated by the Minister. ASIC must give effect to decisions made by liquidator committees.

ASIC must also include particulars of disciplinary action taken against a registered liquidator on the Register of Liquidators. Those particulars include the basis on which ASIC refers matters to a committee.