Is the Liquidator cab-rank appointment mechanism proposal back on the Government’s agenda?
For all our sakes, I hope not!
According to a joint Australian Taxation Office and ASIC webinar on illegal phoenixing activity that I listened to today, it almost certainly is.
The cab-rank proposal would require a liquidator to consent to a court liquidation for a “high-risk” entity based on a next-cab-off-the-rank mechanism.
Firstly what is “high-risk” and who will pay for the inevitable legal fights over this designation?
Whose to say that the next liquidator off the rank has the experience, skill, or (most importantly) the resources to even complete the liquidation?
Why not leave it to market forces to decide the relevant liquidator to take on the appointment?
If a company is designated “high-risk”, will this mean that the Government will be providing additional funding to the Liquidator to carry out their investigative duties?
Once again the Government is not listening to practitioner views on this issue
Please let me know your thoughts in the comments.
