GrantThornton An instinct for growth' To the Creditor as Addressed 19 July 2013 Level 18 King George Central 145 Ann Street Brisbane OLD 4000 GPO Box 1008 Brisbane OLD 4001 617 732220200 F+61 732220444 E intoqldauglcom W www.grentthornton.com.au Dear Sir / Madam GLOBAL RULE PTY LTD (IN LIQUIDATION) A.C.N. 133 555 861 ("the Company") ATF The "Global Rule Trust" I refer to my prior reports to creditors and provide hereunder an update on the status of the liquidation. For ease of reference, this report is set out under the following headings and should be read in conjunction with prior reports issued: I Executive Summary 2 A s s e t Realisations 3 Investigations Update 4 Receipts and Payments 5 Estimated Return to Creditors 6 Remuneration 7 Meeting of Creditors 8 Future Actions Grant Thornton Australia Limited feeS 41 127 556 369 ACt4 127 556 399 Grant Thornton Australia Limited is a rnnrnher Srrrnatthin Grant Thornton tnternatonot Ltd. Grant Thornton international Ltd and the rroornher tlrrns are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related enhties, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation Out Ref 121584e1Done
Transcript
GrantThornton An instinct for growth'
To the Creditor as Addressed
19 July 2013
Level 18 King George Central 145 Ann Street Brisbane OLD 4000 GPO Box 1008 Brisbane OLD 4001
617 732220200 F+61 732220444 E intoqldauglcom W www.grentthornton.com.au
Dear Sir / Madam
GLOBAL RULE PTY LTD (IN LIQUIDATION) A.C.N. 1 3 3 5 5 5 861 ("the Company") ATF The "Global Rule Trust"
I refer to my prior reports to creditors and provide hereunder an update on the status o f the liquidation.
For ease of reference, this report is set out under the following headings and should be read in conjunction with prior reports issued:
I Execut ive Summary
2 A s s e t Realisations
3 Invest igat ions Update
4 R e c e i p t s and Payments
5 Est imated Return t o Creditors
6 Remuneration
7 Meeting o f Creditors
8 Future Actions
Grant Thornton Australia Limited feeS 41 127 556 369 ACt4 127 556 399
Grant Thornton Australia Limited is a rnnrnher Srrrnatthin Grant Thornton tnternatonot Ltd. Grant Thornton international Ltd and the rroornher tlrrns are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related enhties, delivers its services independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation
Out Ref 121584e1Done
' GrantThornton An instinct for growth"
E x e c u t i v e Summary
• As you are aware, I was appointed Liquidator of the Company on 9 June 2011 following an application made by the Australian Securities and Investments Commission ("ASIC").
o Investigations into the affairs o f the Company, its directors and Company assets have been completed. In respect to asset recoveries, I have:
a. Recovered cash and debtors totalling approximately $200k and $97k respectively;
b. Crystallised funds invested in share trading on OptionsXpress of approximately $490k; and
c. Sold other assets including a residential unit, motor vehicle and yacht recovering net proceeds o f $530;
o Assets /recoveries yet to be realised in full/pursued further by me as Liquidator, as outlined in Section 2 of this report, are as follows:
d. Synetec Pty Ltd loan;
e. Mr Hansen's debtor loan account; and
f. The FL & MA Partnership loan account.
• Mr Hansen is now bankrupt and Mr William John Meywes entered into a Personal Insolvency Agreement on 22 October 2010. Accordingly any claim against the Directors for their share of any loan account or insolvent trading must be made under the bankruptcy and H A of Mr Hansen and Mr Meywes, respectively.
o The ASIC are continuing their investigations into the affairs of the Company and its directors separately which we have been and will continue to assist with over time.
o I anticipate that a dividend of approximately 4 cents in the dollar may be payable by or around 31 December 2013. Included in this report is a Notice Inviting Formal Proof of debt or claim. To ensure you are included in the payment o f any future dividend, please ensure you provide a completed Form 535 prior to 31 August 2013 along with the supporting documentation outlined in Section 5 of this report.
• A creditors meeting has been convened for Tuesday, 6 August 2013 to seek the approval of the remuneration o f the Liquidator and a further extension to the repayment plan from Synetec.
Grantlhornton An instinct for growth'
2 A s s e t Realisations
L o a n t o S y n e t e c P t y Ltd
As previously advised Company books and records identified a loan owing from Synetec Pty Ltd ("Synetec") to Global Rule as at the date o f my appointment totalling $100,000. The Director of the Company, Mr Frederick Leslie Hansen, was previously a director and shareholder of Synetec, having resigned on 27 February 2013.
To date I have received funds totalling $97,598 with the balance yet to be repaid. Whilst I anticipate a full recovery of the balance of the loan amount, being $2,402 by 7 August 2013,
as advised by Synetec, I am required to put forward a resolution to creditors at the forthcoming meeting to accept the delayed repayment of this amount. Under the Act, a Liquidator is unable to enter into repayment arrangements that are longer than three months, without creditor approval. Accordingly, at the forthcoming meeting, a resolution will be put to creditors to approve a repayment plan whereby the balance of the funds owing will be repaid prior to 30 November 2013 which is prior to the anticipated date for a dividend distribution.
Whilst I expect that the balance of the funds will be paid in the short term, this extended period is requested so that a further meeting will not be required seeking further approval from creditors to extend the repayment date beyond 30 November 2013.
L o a n t o L e s Hansen
As indicated previously, I issued a demand to Mr Hansen for $358,053 for the repayment of
a loan account. As Mr Hansen failed to repay, this amount, bankruptcy proceedings were commenced with Mr Hansen being declared bankrupt on 27 February 2013.
Mr Hansen's trustee in bankruptcy is Mr William John Fletcher o f Bentleys Corporate Recovery Pty Ltd. Mr Fletcher's investigations in respect to the assets and affairs of Mr Hansen are continuing. Please refer to Sections 2 and 4 below for further details.
P r o p e r t y l o c a t e d a t 2 0 3 / 5 0 R i v e r w a l k A v e n u e , R o b i n a ( " t h e Property")
On 8 August 2012, an auction for the sale of the Property was held at the Titan's Centre of Excellence, Robina. Whilst the Property failed to sell at auction, a contract of sale for $330,000 for the Property was entered into on 24 August 2012.
Following the payment of outstanding rates and body corporate levies along with realisation costs including commission on the sale of the unit, $301,470 was received into the liquidation bank account.
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2 & 6 Monaco St ree t , Surfers Paradise
As advised in my report to creditors dated 4 April 2102 the registered owners of these two (2) properties are the Director, Mr Frederick Hansen, and his wife Mrs Maria Ann Hansen. Both properties are mortgaged to the Assembly of God Property Holdings Ltd ("AOG").
Whilst we have requested an update on the sale of the properties, and whether AOG have taken steps to realise the properties, we understand from the bankruptcy trustee for Mr Hansen that the amount owing to A O G as at May 2013 was $3.4m. As the value of the 2 properties combined is substantially less than $3.4m it is highly unlikely that there will be any surplus for the benefit o f Company creditors following their sale and the repayment in full to AOG.
3 Invest igat ions Update
Provided below is an update on the status of my investigations into the Company's affairs, the circumstances surrounding the failure of the Company and actions taken by me as Liquidator against related parties.
Unfair Preferences
As previously advised, Mr Hansen advised that the Partnership (being the partnership of IVIr Hansen and his wife) "Lenders" were "transferred" into the Company in an attempt to assist the Partnership "Lenders" recover losses incurred prior to the inception of the Company. My initial investigations revealed that substantial payments had been made to the "Lenders" during the relation back period.
A further review of these payments indicates that the recipients of these payments will likely have strong defences against any action commenced against them (e.g. creditor was not aware that the Company was insolvent and received the payments in good faith).
In light o f the above, I do not believe it would be commercial for me to pursue these creditors. Accordingly, we do not expect there will be any recoveries from this source for the benefit of creditors.
Liquidator's Recovery Act ion aga inst Related Parties Personal Financial Position o f Directors
Mr Hansen is now bankrupt and Mr Meywes entered into a Personal Insolvency Agreement on 22 October 2010. Accordingly any claim against the Directors must be made under the bankruptcy and PIA o f Mr Hansen and Mr Meywes, respectively. Should the respective trustees of the affairs o f lv[r Hansen and Mr Mey'ves recover assets for the benefit of creditors, and have any surplus following the payment of their professional fees and costs, a dividend may be paid to the Company.
The Bankruptcy Trustee is yet to conclude his investigations into the affairs of Mr Hansen and accordingly cannot confirm whether a dividend will be paid. It does appear however
Grantlhornton An instinct for growth
that Mr Hansen holds properties jointly with his wife, Mrs Maria Ann Hansen, which may, contain equity that may be recovered by Mr Hansen's bankruptcy trustee. The Trustee's investigations are continuing.
In respect to the PIA entered into by Mr Meywes, I have been advised that a small dividend is expected to be paid by or around the end of 2013.
In light of the above a return to the Company by way o f a dividend, if any, is likely to be minimal.
Debtor Loan Accounts
1. Mr Hansen
Pursuant to a loan account held with the Company, and after adding associated interest and court costs, Mr Hansen owes Global Rule Pty Ltd $373,836. As this amount was not paid when demanded by me as Liquidator, I applied for a sequestration order against Mr Hansen. A bankruptcy trustee was subsequently appointed to Mr Hansen's affairs on 27 February 2013.
This amount, which relates to the payment of Directors' fees and drawings, appears unreasonable given their size and nature.
Any recoveries from Mr Hansen in respect to this loan account will be dependent upon recoveries received under Mr Hansen's bankruptcy.
2. FL & MA Hansen ("the Partnership')
As outlined above, "Lenders" o f the Partnership, being the partnership of Mr Hansen and his wife, were "transferred" into the Company in an attempt to assist the Partnership "Lenders" recover carried forward losses incurred by the Partnership prior to the inception of the Company.
A balance sheet produced from the MYOB accounts discloses an asset titled "Initial Borrowers as at 1/10/08" in the amount of $8,428,333 being transferred into the Company. On the same date, a MYOB liability account titled "Borrowers funds/capital" was credited for $8,428,333 with the memo "to bring in initial borrower balances as at 1/10/2008".
Given the Directors initial representations to me, and the entries referred to above, I have treated the above transaction as a loan to the Partnership occurring at the time of the Company's inception. I note that Mr Hansen's RATA identified a loan owing from him to the Company as at the date of my appointment o f Receiver and Manager of $6m.
The below table identifies a net loan to the partnership of $6,353,196, after deducting cash held on appointment and funds used to purchase assets.
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(5)
Cash at Bank 158,405 OpfionsXpress Account 1,021,066 203/50 Riverwalk Avenue 529,000 2 & 6 Monaco Street 366,666 Total Asset Contributed 2,075,137
Liabilities
Investors Balances as per Company MYOB accounts (8,428,333) Total Liabilities (8,428,333)
Net Loan to the Partnership
As Mr Hansen is an undischarged bankrupt, I intend to continue to pursue Mrs Hansen in respect to the Partnership loan.
Insolvent Trading
Pursuant to Sections 588G and 588M of the Act, a Liquidator may seek to recover from the Directors of a Company any outstanding debt incurred by the Company after a time that a reasonable person would suspect that the Company could not pay its debts as and when they fell due (i.e. after the date it became insolvent).
My investigations conducted to date indicate the Company's Directors may have a liability for insolvent trading of $10.5 million.
Any recoveries from either Mr Hansen or Ivir Meywes in respect to insolvent trading will be dependent upon recoveries received under Mr 1-lansen's bankruptcy or the PTA of Mr Meywes.
ASIC Investigations
I have reported the outcome of my investigations to the Australian Securities and Investments Commissions ("ASIC") pursuant to Section 533 of the Corporations Act ("the Act"). The ASIC have requested I prepare a supplementary report pursuant to Section 533(2) o f the Act, which I am currently in the process of preparing.
The purpose of this supplementary report is to provide the ASIC with additional information to enable them to make a decision on whether to pursue Mr Hansen or Mr Meywes further for breaches of the Corporations Act, including whether an order for the disqualification of them from acting as a Director of a corporation in the future.
4 R e c e i p t s a n d Payments
Please find attached as Annexure A a summary of the Liquidator's receipts and payments for the period of the liquidation to 17 July 2013. Net proceeds in the order of $769,000 are currently held.
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Est imated Return t o Creditors
I have prepared an analysis (attached as Annexure B), o f the estimated return to creditors in the liquidation on an optimistic and pessimistic basis. This does not include any return that may be forthcoming from the bankrupt estate of Mr Hansen or the N A of Mr Meyves which at this stage is unknown. Until these investigations are complete, any recoveries received and a determination made as to whether there will be any return to creditors from the bankrupt estate o f Mr Hansen, I do not intend on paying a dividend to creditors.
Subject to the completion of the investigations conducted by Mr Hansen's Trustee in Bankruptcy and a payment of a dividend from the PIA of Mr Meywes, it is likely that a first and final dividend will not be paid until later this year or in early 2014.
Based on available information it is possible that unsecured creditors may receive a distribution o f up to 4.22 cents in the dollar.
The estimated return is in line with our prior estimate as at 31 March 2012 under a pessimistic scenario. My prior estimate under an optimistic scenario was on the basis that recoveries may be forthcoming from the recovery o f loans to Mr Hansen individually, the Partnership and a higher sale price than what was achieved for the River-walk Avenue unit.
The outcome to creditors, as calculated in Annexure B, is dependent upon:
successful recovery of the remaining debtor balance of $2,402 from Synetec; and
o the final amount claimed by creditors.
To date I have received claims from 72 creditors totalling $10,243,026.
Given creditor claims to date exceed $lOm, resulting in an estimated return of less than 4.5
cents in the dollar, paying an interim distribution may not be feasible.
In preparation of a return to creditors in the near future, I am now inviting creditors who have not yet submitted a Formal Proof o f Debt to do so. In this regard please refer to the attached Form 534 which formally invites you to complete a Form 535 Formal Proof of Debt by 31 August 2013.
Please complete the Formal Proof of Debt form ensuring that you also provide documentary evidence o f the following:
Bank statements identifying the payments made to the Company or the Global Rule Trust;
o Details o f the bank account in which the above payments were deposited into;
A fully executed copy of the Revolving Loan Agreement entered into; and
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• Any other information which provides evidence of monies lent to the Company or the Global Rule Trust.
Only creditors who have completed and provided me with a Form 535— Formal Proof of Debt form can be considered for any distribution made in the future.
6 Remuneration
In order for the Liquidator to receive remuneration, such remuneration is to be approved by creditors or the court.
At the reconvened meeting of creditors held on 11 May 2012, creditors approved the Liquidators' remuneration for the period 9 June 2011 to 31 March 2012 totalling $94,186 (excluding GST and disbursements) and 1 April 2012 to finalisation of the liquidation totalling $50,000 (excluding GST and disbursements).
Set out below is a summary of the fees incurred up to 14 July 2013 and the estimated fee approval required from creditors to finalise the liquidation:
Toe! Lquidoioii To Liquida on Recejv ership Liquidason ToLd Foes Acresi Pu/ire
(1) (F)
Receivership and Relevant Period 13109111 to 09/06/11 09/06/I1 to 31103/12 01/04/121014/07/13 09106111 to 14107/13 15107/13 to Snalisahon Liquidation to
I now seek further fee approval from creditors for the time periods detailed below.
Remuneration to be Approved - W o r k to Date At the meeting, creditors will be requested to approve the Liquidator's remuneration for work undertaken from 1 June 2012 to 14 July 2013.
Remuneration to be Approved - Future Work o f the Liquidators At the meeting, creditors will also be asked to consider the approval of the Liquidator's remuneration of future work for the period 15 July 2013 to finalisation of the liquidation. Remuneration will be drawn on a periodic basis from the funds available in the Liquidation. There is no indemnity provided by any third party for remuneration or liabilities.
Detailed information on the calculation o f remuneration including a breakdown of the expected future work to be undertaken during the Liquidation is provided at Annexure C.
¶ Grantlhornton An instinct for growth
Creditor's resolutions
At the forthcoming meeting, creditors will be asked to consider the following resolutions:
Remuneration to be Approved - Work to Date
'That the remuneration of the Liquidators, their partners and stqfjfor work carried out in relation to the Liquidation of Global Ride P y Ltdfor the period 1 April 2012 to 14 Jul y 2013 be increasedfrom the limit of S30,000(plus Goods and Services Tax) set at the adjourned meetin<y of creditors held on 11 May 2012 to 587,955 (p/us Goods and Services Tax), and may be drawn to the extent of available funds."
Remuneration to be Approved - Future Work of the Liquidators
'That the remuneration of the Liquidator, his partners and staj/for work carried out in relation to Global Rule Pçy Ltd (In Liquidation) be hereby calculated by reference to the current andfuture houi(y rates of Grant Thornton-Recoveiy and Reoianisation Services. Such remuneration for the period 15Juy 2013 to The ,finalisation of the Liquidation is to be capped at 540,000 excludin,g GST and disbursements, and should be drawn to the extent of available funds. In respect to remuneration calculated by reference to future hou,y rates, aqy annual increase to hourly rates chailled will not exceed 10% of the current orprioryearc hour'y rates of Grant Thornton-Recoveiy and Reoeanisation Services."
The increase in remuneration is as a result of:
1. finalising investigations into the affairs of the Company, Mr Hansen and Mr Meywes in respect to preferential payments, related party loans and insolvent trading.
2. Assisting ASIC with its investigations in respect to the affairs of the Company and executing a Statement of Witness in respect to actions against Mr Hansen and Mr Meywes including reviewing Company records held.
3. Preparing this updated report to creditors and convening a Meeting of Creditors.
4. Recovery action against Synetec to obtain further debt reduction of its loan account.
Staffing of Administration
The Liquidator's staff team is structured such that tasks are completed by staff with the appropriate level of experience.
In accordance with the Code of Practice issued by the IPA, please find enclosed an IPA Creditor Information Sheet (as Annexure D) providing information on approval of remuneration and on the liquidation process generally.
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7 Meeting o f Creditors
A meeting of creditors o f Global Rule Pty Ltd (In Liquidation) is to be held as follows:
Date: Tuesday, 6 August 2013 Time: 11:00am Place: Level 18
145 Ann Street Brisbane QLD 4000
10
At the meeting, creditors will be asked to approve the remuneration of the Liquidator and the extension of the repayment plan to Synetec.
Please note that creditors who have already lodged a Proof of Debt form are not required to lodge another unless amending their previous claim. Please ensure that you have provided documentation to support your claim. Please refer to page 5 for a list o f the information required. A proxy form is required if a person is representing another legal entity. It should be noted that where the creditor is a Company or Superannuation fund, the attendee (the Director or nominee) is required to hold a proxy in his/her name from the Company or fund signed by the appropriate Director or officer. All proxies lodged by a company must be completed in accordance with its Constitution (i.e. under the Company's Common Seal if the Constitution so requires).
The following documents are attached to this report:
• Annexure A - Receipt and Payments
• Annexure B - Estimated Return to Creditors
• Annexure C - Remuneration Report
• IPA Creditor Information on Liquidations and Approving Remuneration
• Form 529 - Notice o f Annual General Meeting of Creditors and Members
• Form 532 - Appointment o f Proxy
• Form 534 - Notice Inviting Formal Proof of Debt or Claim
• Form 535 - Formal Proof of Debt or Claim
• Declaration of Independence, Relevant Relationships and Indemnities
• Grant Thornton Recovery & Reorganisation Charge out Rates
8 Future Action
In order to progress with a view to finalising the Liquidation, I intend to:
• Hold a meeting of creditors to discuss this report; • Continue to pursue collection of the balance of the loan owing by Synetec and the Mrs
Hansen in respect to the Partnership debt;
• Lodge a claim with the Bankruptcy Trustee for Mr Hansen and Ivir Meywes in respect to insolvent trading and unreasonable director related transactions;
• Adjudicate on all creditor claims received;
• Declare and pay a dividend to creditors; and
• Pay a dividend upon completion / realisation of the remaining assets of the Company and Liquidator's recoveries.
,40v Grantlhornton An instinct for growth
Should you have any further queries in this matter, please contact Ms Caitlin Wilkinson of this office on (07) 3222 0209. Y 0 1 1 4
faithfully
/ I / / Mi ad McCann
Liq idator
11
Enc.
Global Rule Pty Ltd (In Liquidation)
Annexure A
Receipts and Payments for the period 9 June 2011 to 17 July 2013
9 June 2911 to 1 April 2012 to Total outts and Payments 31 Match 29i2 17 2013 Amount ($)
Receipts Accounts Receivable (Pre Appointment) Cash from Administrators GST Received Interest Income Interests in Land Other Income Sale of Assets Transfer from Receivers Account Total Receipts
Payments Agents Fees Appointee Disbursements Appointee Fees Bank Charges Body Corporate GST Paid Insurance Land Tax Legal Fees Locksmith Other Expenses Rates Receivers Fees and Disbursements Stamp Duty Statutory Advertising Utilities Water Rates Total Payments
I, Michael McCann o f Grant Thornton Australia Limited, have undertaken a proper assessment o f this remuneration claim for my appointment as Liquidator of Global Rule Pty Ltd in accordance with the law and applicable professional standards. I am satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the Administration.
Executive Summary
To date, remuneration totalling $144,186 has been approved and paid in this administration. This remuneration report details approval sought for the following fees:
Period Report Amount Reference (ex GST)
Past remuneration approved:
9 June 2011 to 31 March 2012 Page 8 $94,186
1 April 2012 to finalisation Page 8 $50,000
Total p a s t remuneration approved Page 8 $144,186
Current remuneration approval sought:
Liquidation ( i f applicable) Page 9
Resolutions:
"That the remuneration of the Liquidators, their partners and staff for Increase of work carried out in relation to the Liquidation of Global Rule Pty Ltd for the period I April 2012 to 14 July 2013 be increased from the limit of Page 9 $37,955 $50,000 (plus Goods and Services Tax) set at the adjourned meeting of creditors held on 11 May 2012 to $87,955 (plus Goods and Services Tax), and may be drawn to the extent of available funds."
Remuneration to thi alisation * "That the remuneration o f the Liquidator, his partners and staff for work-carried
out in relation to Global Rule Pty Ltd (In Liquidation) be hereby calculated by reference to the current and future hourly rates of Grant Page 9 $40,000 Thornton-Recovery and Reorganisation Services. Such remuneration for the period 15 July 2013 to the finalisation of the Liquidation is to be capped at $40,000 excluding GST and disbursements, and should be drawn to the extent of available funds. In respect to remuneration calculated by reference to future hourly rates, any annual increase to hourly rates charged will not exceed lO% of the current or prior year's hourly rates of Grant Thornton-Recovery and Reorganisation Services."
Approval for the future remuneration sought is based on an estimate of the work necessary to the completion o f the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.
Please refer to report section references detailed above for full details of the calculation and composition of the remuneration approval sought.
The above is differs to the estimate o f costs provided in the Advice to Creditors dated 4 April 2012 due to the following reasons:
o Assistance provided to ASIC in respect to their continued investigations into the Company and its directors, including former directors.
• Delay in collection of the debt owing from Synetec.
• Additional investigations required substantiating the loan accounts owing from Mr Hansen and the Partnership to the Company.
• Assisting the trustee in bankruptcy for Mr Hansen in respect their investigations to date.
Description o f work completed / to be completed
Please refer to the attached descriptions o f work completed and to be completed in respect to each resolution sought.
Calculation of Remuneration
Included in the attached remuneration report is a schedule detailing the work completed and to be completed by employee, position, hourly rate and by task area.
Annexure C
REMUNERATION REPORT Calculation of Remuneration Global Rule Pty Ltd (In Liquidation) Remuneration Report - Description of Work Completed from 1 April 2012 to 14 July 2013
Employee Position S/hour Total Total ($) Task Area (ox GST)* actual Administration Investigation Assets Creditors
Practitioner(s) Michael McCann Firm Grant Thornton Australia Limited
Administration Type Official Liquidation
Period 1 April 2012 to 14 July 2013
Task 1\1L ( c n i ii Includes Description
Assets Debtors Correspondence with debtors 61.4 hours Reviewing and assessing debtors ledgers $16,115 Liaising with solicitors regarding recovery o f debtors
Correspondence issued and received in respect to Mr F-Iansen's Bankruptcy and Mr Meywes' PTA
Creditor enquiries Receive and follow up creditor enquiries via telephone and email
Review and prepare correspondence to creditors and their representatives via facsimile, email and post Creditors Creditor reports Preparing report to creditors and notice o f meeting 125.5 hours $40 569.50
P r e p a r i n g estimated dividend to creditors
Dealing with proofs Receipting and filing Proofs o f Debt when not related to a dividend o f debt
Conducting Review o f Directors' personal asset position and conduct various searches investigation Reviewing company's books and records
Progress investigations file
Investigation Dealings with legal Email correspondence with solicitors 54.2 hours advisors Meetings with solicitors $17,363.50 ASIC reporting Preparing statutory investigation reports (section 533 and supplementary 533 report)
Liaising with ASIC Preparing Statement o f Witness for lodgement with ASIC Meetings with ASIC to discuss Statement o f Witness
Task Ai:ea General Description
Document maintenance/ file review/ checklist
Administration 117.7 hours $27,327
Total $101,375 Billed ($49,814) Adjustments ($13,420) N e t WIP $38,141
Bank account administration
A T O & other statutory reporting Planning / Review
Includes
Filing o f documents File reviews Updating checklists Reviewing and distributing incoming mail Preparing and reviewing payments Bank account reconciliations Correspondence with bank regarding specific transfers Preparing and reviewing BAS' Correspondence with the ATO
Discussions regarding status o f administration
Remuneration Methods There are four basic methods that can be used to calculate the remuneration charged by an Insolvency Practitioner. They are: a. Time based / hourly rates
This is the most common method. The total fee charged is based on the hourly rate charged for each person who carried out the work multiplied by the number of hours spent by each person on each of the tasks performed.
b. Fixed Fee The total fee charged is normally quoted at the commencement of the administration and is the total cost for the administration. Sometimes a Practitioner will finalise an administration for a fixed fee.
C. Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations.
d. Contingency The practitioner's fee is structured to be contingent on a particular outcome being achieved.
Method chosen Given the nature of this administration we propose that our remuneration be calculated on a time based / hourly rated basis. This is because:
It ensures that creditors are only charged for work that is performed Our time is recorded and charged in six minute increments.
We will be required to perform a number of tasks that do not specifically relate to asset realisation.
Explanation of Hourly Rates The rates for our remuneration calculation are set out in the attached table together with a general guide showing the qualifications and experience of staff engaged in the administration and the role they take in the administration. The hourly rates charged encompass the total cost of providing professional services and should not be compared
to an hourly wage.
Disbursements
Disbursements are divided into three types: A, Bi, B2.
A disbursements are all externally provided professional services. These are recovered at cost. An example of an A disbursement is legal fees.
BI disbursements are externally provided non-professional costs such as travel, accommodation and search fees. Bi disbursements are recovered at cost.
B2 disbursements are internally provided non-professional costs such as photocopying, printing and postage. B2 disbursements, if charged to the Administration, would generally be charged at cost; though some expenses such as telephone calls, photocopying and printing may be charged at a rate which recoups both variable and fixed
costs.
I have undertaken a proper assessment of disbursements claimed for the Company, in accordance with the law and applicable professional standards. I am satisfied that the disbursements claimed are necessary and proper.
All disbursements are claimed at cost except for faxing which is charged as follows:
- Local-$1 per page
- National - $2 per page
- International - $3 per page.
Creditors have the right to question the incurring of disbursements and can challenge disbursements in court.
IPA Creditor Information Sheet Please fmd attached a copy of the ASIC Creditor Information Sheet that outlines further information regarding the remuneration approval and payment process.
Company Global Rule Pty Ltd (In Liquidation)
Practitioner(s) Michael Gerard McCann Firm Grant Thornton Australia Limited Administration Type Official Liquithtion
Period From 15 July 2013 to Finalisation
Task Area General Description Includes
Assets Debtors Continued collection of debtor $1,000 Correspondence with debtor
Creditor Enquiries Receive and follow up creditor enquiries Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, email and post
Creditor reports Prepare reports to creditors Dealing with proofs of Receipting and filing Proofs of Debt
Creditors debt R e v i e w i n g claims received to date and upon receipt in accordance with the Form 534 - Notice Inviting
$7)000 ______________________ Formal Proof o f Debt or Claim
Meeting of Creditors Preparation of meeting notices, proxies and advertisements Forward notice of meeting to all known creditors Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting. Preparation and lodgement of minutes of meetings with ASIC Respond to stakeholder queries and questions following meeting
Recovery of Partnership Provide the relevant information obtained from investigations and liaise with solicitors in respect to options Loan Account available for recovery
Investigations Demand the repayment in full from Mrs Hansen $12,000 Should payment not occur, issue the relevant legal proceedings for recovery of the debt including initiating
bankruptcy proceedings Conducting Reviewing Company's books and records
Task Area General D€ '.cupuon Includes
investigation Continued work on investigation file notes Recoveries from Mr Obtain updates in respect to Mr Hansen's bankruptcy and Mr Meywes PTA on investigations and likelihood Hansen and Mr Meywes of a dividend
ASIC reporting Finalisation and lodgement of supplementary report (section 533 supplementary report) Liaising with ASIC in respect to any proceedings or requests for information in respect to the Company and its directors, including former directors.
Processing proofs of Receipt of Proofs of Debt debt Maintain Proofs of Debt register
Adjudicating 150+ Proofs of Debt Request further information from claimants regarding Proofs of Debt Preparation of correspondence to claimant advising outcome of adjudication
Dividend procedures Preparation of correspondence to creditors advising of intention to declare dividend Advertisement of intention to declare dividend
Dividend - $15 000
Obtain clearance from A f O to allow distribution of Company's assets Preparation of dividend calculation Preparation of correspondence to creditors announcing declaration of dividend Advertise announcement of dividend Preparation of distribution Preparation of dividend file Preparation of payment vouchers to pay dividend Preparation of correspondence to creditors enclosing payment of dividend
$ mamtenance/file Filing of documents review/checklist File reviews
Updating checklists
Task Area
Total
General Description Includes
Bank account Preparing correspondence regarding closure of accounts administration Requesting bank statements
Bank account reconciliations Correspondence with bank regarding specific transfers
ASIC Form 524 and Preparing and lodging ASIC forms including 505, 524, 911 etc other forms Correspondence with ASIC regarding statutory forms ATO & other statutory I Notification of ceasing to act reporting Preparing BAS'
Completing PAYG Payment Summaries Finalisation Notifying ATO of finalisation
Discussions regarding status of administration Dealing with records in storage Sending job files to storage
Remuneration Methods There are four basic methods that can be used to calculate the remuneration charged by an Insolvency Practitioner. They are: a. Time based / hourly rates
This is the most common method. The total fee charged is based on the hourly rate charged for each person who carried out the work multiplied by the number of hours spent by each person on each of the tasks performed.
b. Fixed Fee
The total fee charged is normally quoted at the commencement of the administration and is the total cost for the administration. Sometimes a Practitioner will finalise
an administration for a fixed fee.
C . Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations.
d. Contingency The practitioner's fee is structured to be contingent on a particular outcome being achieved.
Method chosen Given the nature o f this administration we propose that our remuneration be calculated on a time based / hourly rated basis. This is because:
It ensures that creditors are only charged for work that is performed. Our time is recorded and charged in six minute increments.
We will be required to perform a number of tasks that do not specifically relate to asset realisation.
Explanation o f Hourly Rates
The rates for our remuneration calculation are set out in the attached table together with a general guide showing the qualifications and experience of staff engaged in the administration and the role they take in the administration. The hourly rates charged encompass the total cost of providing professional services and should not be compared
to an hourly wage.
At the meeting of creditors which is to be held on 6 August 2013, we will be seeking approval from creditors for my future remuneration incurred as Liquidator, totalling $40,000 excluding GST and disbursements.
Disbursements
Disbursements are divided into three types: A, Bi, B2.
A disbursements are all externally provided professional services. These are recovered at cost. An example of an A disbursement is legal fees.
Bi disbursements are externally provided non-professional costs such as travel, accommodation and search fees. Bi disbursements are recovered at cost.
B2 disbursements are internally provided non-professional costs such as photocopying, printing and postage. B2 disbursements, if charged to the Administration, would generally be charged at cost; though some expenses such as telephone calls, photocopying and printing may be charged at a rate which recoups both variable and fixed
costs.
I have undertaken a proper assessment o f disbursements claimed for the Company, in accordance with the law and applicable professional standards. I am satisfied that the disbursements claimed are necessary and proper.
All disbursements are claimed at cost except for faxing which is charged as follows:
- Local - $1 per page
- National - $2 per page
- International - $3 per page.
Creditors have the right to question the incurring of disbursements and can challenge disbursements in court.
IPA Creditor Information Sheet Please find attached a copy of the ASIC Creditor Information Sheet that outlines further information regarding the remuneration approval and payment process.
'AOSTR4I ASIC Aust ra l i an secur i t i es & Inves tmen t s Commission
T -ET 45
Liquidation: a guide for creditors If a company is in financial difficulty, its shareholders, creditors or the court can put the company into liquidation.
This information sheet provides general inforniation for unsecured creditors of companies in liquidation.
Who is a creditor? You are a creditor o f a company if the company owes you money. Usually, a creditor is owed money because they have provided goods or services, or made loans to the company.
An employee owed money for unpaid wages and other entitlements is a creditor. A person who may be owed money by the company if a certain event occurs (e.g. i f they succeed in a legal claim against the company) is also a creditor, and is sometimes referred to as a 'contingent' creditor.
There are generally two categories of creditor: secured and unsecured.
• A secured creditor is someone who has a security interest (as defined in s12 of the Personal Property Securities Act 2009), such as a charge or a mortgage, over some or all of the company's assets, to secure a debt owed by the company. Lenders usually require a security interest over company assets when they provide a loan.
o An unsecured creditor is a creditor who does not have a security interest over the company's assets.
Employees are a special class of unsecured creditors. In a liquidation, some of their outstanding entitlements are paid in priority to the claims of other unsecured creditors. If you are an employee, see ASIC's information sheet INFO 46 Liquidation: a guide f o r employees.
All references in this information sheet to 'creditors' relate to unsecured creditors unless otherwise stated.
The purpose of liquidation The purpose o f liquidation of an insolvent company is to have an independent and suitably qualified person (the liquidator) take control of the company so that its affairs can be wound up in an orderly and fair way for the benefit of all creditors.
Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.
The most common type is a creditors' voluntary liquidation, which usually begins in one of two ways:
• creditors vote for liquidation following a voluntary administration or a terminated deed of company arrangement, or
• an insolvent company's shareholders resolve to liquidate the company and appoint a liquidator. Within 11 days of being appointed by shareholders, the liquidator must call a meeting of creditors who may confirm the liquidator's appointment or appoint another liquidator of the creditors' choice.
In a court liquidation, a liquidator is appointed by the court to wind up a company, following an application, usually by a creditor. Others, including a director, a shareholder and ASIC, can also make a winding-up application.
After a company goes into liquidation, unsecured creditors can no longer commence or continue legal action against the company, unless the court permits.
It is possible for a company in liquidation to also be in receivership: see ASIC inforniation sheet INFO 54 Receivership: a guide f o r creditors.
The liquidator's role When a company is being liquidated because it is insolvent, the liquidator has a duty to all the company's creditors. The liquidator's role is to:
• collect, protect and realise the company's assets
• investigate and report to creditors about the company's affairs, including any unfair preferences which may be recoverable, any uncommercial transactions which may be set aside, and any possible claims against the company's officers
• enquire into the failure of the company and possible offences by people involved with the company and report to ASIC
• after payment of the costs of the liquidation, and subject to the rights o f any secured creditor, distribute the proceeds of realisation—first to priority creditors, including employees, and then to unsecured creditors, and
• apply for deregistration o f the company on completion of the liquidation.
Except for lodging documents and reports required under the Corporations Act 2001 (Corporations Act), a liquidator is not required to do any work unless there are enough assets to pay their costs.
If the company is without sufficient assets, one or more creditors may agree to reimburse a liquidator's costs and expenses of taking action to recover further assets for the benefit o f creditors.
In this case, if additional assets are recovered, the liquidator or particular creditor can apply to the court for the creditor to be compensated for the risk involved in funding the liquidator's recovery action.
If a liquidator suspects that people involved with the company may have committed offences and the liquidator reports this to ASIC, the liquidator may also be able to apply to ASIC for funding to carry out a further investigation into the allegations.
A liquidator has the ability to recover, for the benefit of all creditors, certain payments (known as unfair preferences) made by the company to individual creditors in the six months before the start of the liquidation.
Broadly, a creditor receives an unfair preference if, during the six months prior to liquidation, the company is insolvent, the creditor suspects the company is insolvent, and receives payment of their debt (or part of it) ahead of other creditors. To be an unfair preference, the payment must put the creditor receiving it in a more favourable position than other unsecured creditors.
Not all payments from the company to a creditor in the six months before liquidation are unfair preferences. The Corporations Act provides various defences to an unfair preference claim.
If a liquidator seeks to recover a payment that has been made to you, you may wish to obtain independent legal advice on the merits of the liquidator's claim before repaying any money.
Creditors' meetings A liquidator may call a creditors' meeting from time to time to inform creditors of the progress of the liquidation, to find out their wishes on a particular matter or seek approval of the liquidator's fees.
You may also use a creditors' meeting to ask questions about the liquidation and inform the liquidator about your knowledge of the company's affairs.
Meetings during a court liquidation
In a court liquidation, the liquidator is not required to call a creditors' meeting unless a matter requires creditor approval.
The only exception is that if the creditors pass a resolution requiring a creditors' meeting to be called, or at least one-tenth in value o f all the creditors request the liquidator in writing to do so, the liquidator must call a creditors' meeting. However, it is unusual for this to happen, as those who make the request or pass the resolution must pay the costs of calling and holding the meeting.
Meetings during a creditors' voluntary liquidation
In a creditors' voluntary liquidation, the liquidator may choose to hold an annual meeting of the creditors or lodge a report with ASIC on the progress in the administration. If they choose not to hold the meeting, the liquidator must tell creditors that the report has been prepared and give them a copy free of charge i f asked. The report must set out:
• an account of the liquidator's acts and dealings and the conduct of the winding up in the preceding year
• a summary of the tasks yet to be done in the liquidation, and
• an estimate of when the liquidation is expected to be finalised.
The liquidator in a creditors' voluntary winding up must also hold ajoint meeting of the creditors and members at the end of the winding up. Creditors can require the liquidator to call a creditors' meeting at other times, the same as in a court liquidation, as long as they pay the associated costs.
Minutes of meetings
The chairperson of a creditors' meeting (usually the liquidator or one of their senior staff) must prepare minutes of the meeting and a record of those who were present at the meeting and lodge them
with ASIC within one month. A copy may be obtained from any ASIC Business Centre on payment of the relevant fee.
Voting at a creditors' meeting To vote at a creditors' meeting you must lodge details of your debt or claim with the liquidator. Often, the liquidator will provide you with a form called a 'proof of debt' to be completed and returned before the meeting. Proofs of debt are discussed further below.
The chairperson of the meeting decides whether or not to accept the debt or claim for voting purposes. The chairperson may decide that a creditor does not have a valid claim or the amount of the debt cannot be determined with any certainty at the date o f the meeting. In this case, they may not allow the creditor to vote at all, or only to vote for a debt of $1. This decision is only for voting purposes. It is not relevant to whether a creditor will receive a dividend.
An appeal against a decision by the chairperson to accept or reject a proof of debt or claim for voting purposes may be made to the court within 14 days after the decision.
Voting by proxy You may appoint a proxy to attend and vote at a meeting on your behalf. A proxy can be any person who is at least 18 years old. Creditors who are companies will have to nominate a person as proxy so that they can participate in the meeting. This is done using a fonri sent out with the notice of meeting. The completed proxy form must be provided to the liquidator before the meeting. You can fax the proxy form to the liquidator, but must lodge the original within 72 hours of sending the faxed copy.
An electronic form of proxy may be used if the liquidator allows electronic lodgement provided there is a way to authenticate the appointment of the proxy (e.g. by scanning and emailing a signature or using a digital signature).
You can specify on the proxy form how the proxy is to vote on a particular resolution and the proxy must vote in accordance with that instruction. This is called a 'special proxy'. Alternatively, you can leave it to the proxy to decide how to vote on each of the resolutions put before the meeting. This is called a 'general proxy'.
You can appoint the chairperson to represent you either through a special or general proxy. The liquidator or one of their partners or employees must not use a general proxy to vote in favour of a resolution approving payment of the liquidator's fees.
Manner of voting A vote on any resolution put to a creditors' meeting may be taken by creditors stating aloud their agreement or disagreement, or by a show of hands. Sometimes a more formal voting procedure called a 'poll' is taken.
If voting is by show of hands or by verbally signalling agreement, the resolution is passed if a majority of those present indicate agreement. It is up to the chairperson to decide i f this majority has been reached.
After the vote, the chairperson must tell those present whether the resolution has been passed or lost.
The chairperson may decide to conduct a poll, or a poll can be demanded by at least two people present who are entitled to vote, or someone who holds more than 10% of the votes of those entitled to vote at the meeting. The chairperson will determine how this poll is taken.
If you intend to demand that a poll be taken, you must do so before, or as soon as, the chairperson has declared the result of a vote taken by show of hands or voices.
When a poll is conducted, a resolution is passed if:
o more than half the number of creditors who are voting (in person or by proxy) vote in favour of the resolution, and
• those creditors who are owed more than half of the total debt owed to creditors at the meeting vote in favour of the resolution.
This is referred to as a 'majority in number and value'. If no result is reached, the chairperson has a casting vote.
Chairperson's casting vote
When a poll is taken and there is a deadlock, the chairperson may use their casting vote either in favour of or against the resolution. The chairperson may also decide not to use their casting vote.
The chairperson must inform the meeting of the reasons why they cast the vote a particular way or why they chose not to use their casting vote. They must also include these reasons in the written minutes o f meeting that are lodged with ASIC.
If you are dissatisfied with how the chairperson exercised their casting vote or failed to use their casting vote, you may apply to court for a review of the chairperson's decision. The court may vary or set aside the resolution or order that the resolution is taken to have been passed.
Votes o f related creditors
Directors and shareholders, their spouses and relatives and other entities controlled by them are entitled to attend and vote at creditors' meetings if they are creditors of the company.
If a resolution is passed, or defeated, based on the votes of these related creditors, and you are dissatisfied with the outcome, you may apply to court for the resolution to be set aside and/or for a fresh resolution to be voted on without related creditors being entitled to vote. Certain criteria must be met before the court will make such an order (e.g. the original result of the vote being against the interests o f all or a class of creditors).
Committee of inspection In both types of liquidation, the liquidator may ask creditors i f they wish to appoint a committee of inspection and, if so, who will represent the creditors on the committee.
A committee of inspection assists the liquidator, approves fees and, in limited circumstances, approves the use of some of the liquidator's powers, on behalf of all the creditors.
Committee meetings can be arranged at short notice, which allows the liquidator to quickly obtain the committee's views on urgent matters. Shareholders may also be members of the committee.
At the first meeting in a creditors' voluntary liquidation, creditors can decide to appoint a committee of inspection.
Creditors in both types of liquidation can also request at any time that the liquidator call separate meetings o f shareholders and creditors to decide whether a committee of inspection should be appointed and, if so, who will represent the shareholders and creditors on the committee. This doesn't usually happen, as the creditor making the request must pay the costs o f calling and holding these meetings.
A member of the committee of inspection must not, without permission from the court, accept a gift or benefit from the company or any other person, including another creditor, or purchase any of the company's property.
A committee of inspection acts by a majority in number of its members present at a meeting, but it can only act i f a majority of its members attend.
A liquidator must consider any directions given by the committee of inspection, but is not bound to follow them.
Minutes of committee of inspection meetings must be prepared and lodged with ASIC within one month. A copy may be obtained from any ASIC Business Centre on payment of the relevant fee.
Approval of liquidator's fees
A liquidator is entitled to be paid for the work carried out on the liquidation, but only if there are assets available. The liquidator cannot be paid until the amount of fees has been approved by one of the methods set out in the Corporations Act.
In a court liquidation, the amount of fees is approved by:
• agreement with a committee of inspection (if there is one), or
• a resolution passed at a creditors' meeting, or
• the court.
The liquidator must try to get approval by each of these methods, in turn.
In a creditors' voluntary liquidation, a committee of inspection or creditors may approve the fees.
If no fees have been approved in a court liquidation or a creditors' voluntary winding up, the liquidator may draw fees to a maximum of $5000 where they have called a meeting of creditors but not obtained approval for their fees because the meeting did not have a quorum.
The court has the power to review the amount of fees approved.
If you are asked to approve fees, either at a meeting o f a committee of inspection or in a general meeting of creditors, the liquidator must give you, at the same time as the notice of the meeting, a report that contains sufficient information for you to assess whether the fees claimed are reasonable. This report should be in simple language and set out:
• a description of the major tasks performed
• the costs of completing these tasks, and
• such other infonnation that will assist in assessing the reasonableness of the fees claimed.
For further information, see Information Sheet 85 Approving fees: a guide for creditors (INFO 85).
If you are in any doubt about how the fees were calculated, ask the liquidator for more information.
In a court liquidation, the liquidator must also send creditors a statement of all receipts and payments for the liquidation.
Apart from fees, the liquidator will also be entitled to reimbursement for out-of-pocket expenses that have arisen in carrying out the liquidation. This reimbursement does not require committee, creditor or court approval. However, creditors have a right to know what funds were spent on these costs and why they were spent.
Payment of dividends If there are funds left over after payment of the costs of the liquidation, and payments to other priority creditors, including employees, the liquidator will pay these to unsecured creditors as a dividend. Generally, the order in which funds are distributed is:
1. costs and expenses of the liquidation, including liquidators' fees
2. outstanding employee wages and superannuation
3. outstanding employee leave of absence (including annual leave, sick leave a n d a p p l i c a b l e — a n d long service leave)
4. employee retrenchment pay, and
5. unsecured creditors.
Each category is paid in full before the next category is paid. If there are insufficient funds to pay a category in full, the available funds are paid on a pro rata basis (and the next category or categories will be paid nothing).
Proving your debt
Before any dividend is paid to you for your debt or claim, you will need to give the liquidator sufficient information to prove your debt.
The liquidator will notify you if there are likely to be funds available for distribution and must call for formal proof of debt forms to be lodged. At least 14 days notice of the deadline for lodging the proof must be given.
This notice must be given to each person claiming to be a creditor whose debt or claim has not already been admitted by the liquidator. It must also be published in a daily newspaper in the states where the company carried out its business. A copy of the formal proof of debt form will be sent to you with the notice.
You should attach copies of any relevant invoices or other supporting documents to the proof of debt form, as your debt or claim may be rejected if there is insufficient evidence to support it.
If a creditor is a company, the proof of debt form must be signed by a person authorised by the company to do so.
The completed proof of debt form must be delivered or posted to the liquidator. When submitting your claim, ask the liquidator to acknowledge receipt of your claim and advise if any further information is needed.
The liquidator must notify you within seven days if they reject your claim. If you are dissatisfied with the decision, your first step should be to promptly contact the liquidator to see if you can resolve the matter.
If you can't resolve the matter with the liquidator, you may wish to seek your own legal advice, as you have a limited time to appeal to the court. The liquidator will notify you of this time in the notice of rejection. It must be at least 14 days after you receive the notice. The court has the power to extend the time to appeal. If you don't appeal within this time, the liquidator's decision on your claim is final.
If you have a query regarding the calculation of your claim, or the timing of the payment, discuss this with the liquidator.
Other creditor rights As well as the various rights involving meetings and participation in dividends discussed above, the other rights of unsecured creditors include the right to:
• receive written reports to creditors about the liquidation
• inspect certain books of the liquidator
• inform the liquidator about your knowledge of matters relevant to the affairs of the company in liquidation, and
• complain to ASIC or the court about the liquidator's conduct in connection with their duties.
Written reports
The number of written reports a liquidator sends to creditors about the liquidation varies. If there are no funds at all available in the liquidation, it is possible that no written report will be sent, although many liquidators will send creditors a brief report even if there are no funds.
Liquidator's books
Liquidators must keep sufficient books to give a complete and correct record of their administration of the company's affairs. These include minutes o f meetings and details of all the receipts and payments for the liquidation. These books must be available at the liquidator's office for inspection by creditors and shareholders.
Copies of minutes of meetings and six-monthly detailed lists of receipts and payments, as well as a number of other documents, must also be lodged with ASIC. Copies may be obtained from any ASIC Business Centre on payment o f the relevant fee.
Creditors are unable to access the company's books and records without court permission.
Informing the liquidator
The liquidator must report to ASIC i f they suspect that anyone connected to the company may have committed an offence. If you have any infonnation that might assist in preparing such a report, you should let the liquidator know.
These reports are not available for inspection. ASIC reviews these reports and decides whether to take further action, such as banning a person from acting as a company director for a period of time or charging the person with a criminal offence.
Applications to the court
Creditors can apply to the court i f they are dissatisfied with an act, omission or decision of a liquidator. This includes i f a creditor seeks:
• to challenge the liquidator's decision not to admit a proof of debt or claim, either for voting or dividend purposes, and
• a review of the liquidator's fees, in certain circumstances.
Making an application to the court can be costly. You should attempt to resolve any problems with the liquidator and only go to court i f this fails.
Liquidators, ASIC and other people can also make applications to the court. For example, a liquidator might apply to have questions decided or powers exercised in a liquidation.
Complaining to ASIC about a liquidator's conduct is discussed below.
Secured creditors' rights If a company fails to meet its obligations under a security interest (e.g. a charge or a mortgage), a secured creditor can appoint an independent and suitably qualified person (a receiver) to take control of and realise some or all of the secured assets, in order to repay the secured creditor's debt. This right continues after the company goes into liquidation. For more on receivership, see Information Sheet 54 Receivership: a guide f o r creditors (INFO 54).
Another option available to a secured creditor is to ask the liquidator to deal with the secured assets for them and account to them for the proceeds and costs of collecting and selling those assets.
A secured creditor is entitled to vote at creditors' meetings for the amount the company owes them that exceeds the amount they are likely to receive from realisation of the secured assets. The secured creditor can participate in any dividend to unsecured creditors on a similar basis.
Directors and liquidation
Directors cannot use their powers after a liquidator has been appointed. They have an obligation to assist the liquidator by:
• advising the liquidator of the location of company property and delivering any such property in their possession to the liquidator
• providing the company's books and records to the liquidator
• advising the liquidator of the whereabouts of other company records
• providing a written report about the company's business, property and financial circumstances within 14 days of the appointment of the liquidator by the court or within 7 days of the appointment of a liquidator in a creditors' voluntary liquidation
• meeting with, or reporting to, the liquidator to help them with their enquiries, as reasonably required, and
• if required by the liquidator, attending a creditors' meeting to provide information about the company and its business, property, affairs and financial circumstances.
A liquidator has the power to apply to the court to conduct a public examination, under oath, of a director (or other person with information about the company).
Compensation proceedings for amounts lost by creditors as a result of the company trading while insolvent can be initiated against a director personally by ASIC, a liquidator or, in certain circumstances, a creditor.
Conclusion of liquidation
A liquidation effectively comes to an end when the liquidator has realised and distributed all the company's available property and made their report to ASIC.
In a creditors' voluntary liquidation, the liquidator must hold a final joint meeting of the creditors and members to give an account of how the liquidation has been conducted and how company property has been disposed of. After the final meeting is held, the company is automatically deregistered by ASIC three months after a notice of the holding of the meeting is lodged.
In a court liquidation, the liquidator is not required to hold a final meeting of creditors. After the liquidator decides that the company's affairs are fully wound up, they may:
• seek an order for release and that ASIC deregister the company, or
• if there are insufficient assets to obtain a court order for the company's deregistration, request that ASIC deregister the company.
A company ceases to exist after it has been deregistered.
Queries and complaints You should first raise any queries or complaints with the liquidator. If this fails to resolve your concerns, including any concerns about the liquidator's conduct, you can lodge a complaint with ASIC at www.asic.gov.au/complain, or write to:
ASIC Complaints P 0 Box 9149 TRARALGON VIC 3844
ASIC will usually not become involved in matters of commercial judgement by a liquidator. Complaints against companies and their officers can also be made to ASIC. For other enquiries, visit www.asic.gov.au/cuestion, or call ASIC on 1300 300 630 for the cost of a local call.
To find out more For an explanation of terms used in this information sheet, see Information Sheet 41 Insolvency: a glossary o f terms (INFO 41). For more on external administration, see ASIC's related information sheets at www.asic.gov.au/insolvencyinfosheets:
• INFO 74 Voluntary administration: a guide for creditors
• INFO 75 Voluntary administration: a guide./67- employees
• INFO 46 Liquidation: a guide for employees
• INFO 54 Receivership: a guide for creditors
• INFO 55 Receivership: a guide f o r employees
• INFO 43 Insolvency: a guide f o r shareholders
• INFO 42 Insolvency: a guide f o r directors
• INFO 84 Independence o f external administrators: a guide f o r creditors
• INFO 85 Approving fees: a guide f o r creditors
These are also available from the Insolvency Practitioners Association (IPA) website at www.ipaa.com.au. The IPA website also contains the IPA's Code of Professional Practice for Insolvency Professionals, which applies to IPA members.
Important note This information sheet contains a summary of basic infonnation on the topic. It is not a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. This document may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional adviser to take into account your particular circumstances and to tell you how the law applies to you.
ASIC Aust ra l ian secur i t ies & Inves tments Commission
( H H H185
Approving fees: a guide for creditors If a company is in financial difficulty, it can be put under the control of an independent external administrator.
This information sheet gives general information for creditors on the approval of an external administrator's fees in a liquidation of an insolvent company, voluntary administration or deed of company arrangement (other forms of external administration are not discussed in this information sheet). It outlines the rights that creditors have in the approval process.
Entitlement to fees and costs A liquidator, voluntary administrator or deed administrator (i.e. an 'external administrator') is entitled to be:
• paid reasonablefees, or remuneration, for the work they perform, once these fees have been approved by a creditors' committee, creditors or a court, and
• reimbursed for out-of-pocket costs incurred in performing their role (these costs do not need creditors' committee, creditor or court approval).
External administrators are only entitled to an amount of fees that is reasonable for the work that they and their staff properly perform in the external administration. What is reasonable will depend on the type of external administration and the issues that need to be resolved. Some are straightforward, while others are more complex.
External administrators must undertake some tasks that may not directly benefit creditors. These include reporting potential breaches of the law and lodging a detailed listing of receipts and payments with ASIC every six months. The external administrator is entitled to be paid for completing these statutory tasks.
For more on the tasks involved, see ASIC's information sheets INFO 45 Liquidation: a guide for creditors and INFO 74 Voluntaiy administration: a guide for creditors.
Out-of-pocket costs that are commonly reimbursed include:
Important note: This information sheet contains a summary of basic information on the topic. It is not a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. This document may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional adviser to take into account your particular circumstances and to tell you how the law applies to you.
• valuer's, real estate agent's and auctioneer's fees
• stationery, photocopying, telephone and postage costs
• retrieval costs for recovering the company's computer records, and
• storage costs for the company's books and records.
Creditors have a direct interest in the level o f fees and costs, as the external administrator will, generally, be paid from the company's available assets before any payments to creditors. If there are not enough assets, the external administrator may have arranged for a third party to pay any shortfall. As a creditor, you should receive details of such an arrangement. If there are not enough assets to pay the fees and costs, and there is no third party payment arrangement, any shortfall is not paid.
Who may approve fees Who may approve fees depends on the type o f external administration: see Table 1. The external administrator must provide sufficient information to enable the relevant decision-making body to assess whether the fees are reasonable.
Table 1: Who may approve fees
Administrator in a voluntary administration
Administrator of a deed of company arrangement
Creditors' voluntary liquidator
Court-appointed liquidator If there is one.
Creditors' Creditors committee
.7'
/1
V
V.
.75
4.5
Court
V
V
X3
1/2
2 If there is no approval by the committee or the creditors. Unless an application is made for a fee review. I f there is no creditors' committee or the committee fails to approve the fees. If insufficient creditors turn up to the meeting called by the liquidator to approve fees, the liquidator is entitled to be paid up to a maximum of $5000, or more if specified in the Corporations Regulations 2001.
Creditors' committee approval If there is a creditors' committee, members are chosen by a vote of creditors as a whole. In approving the fees, the members represent the interests o f all the creditors, not just their own individual interests.
There is not a creditors' committee in every external administration. A creditors' committee makes its decision by a majority in number o f its members present at a meeting, but it can only act if a majority o f its members attend.
To find out more about creditors' committees and how they are formed, see ASIC's information sheets INFO 45 Liquidation: a guide f o r creditors, INFO 74 Voluntary administration: a guide f o r creditors and INFO 41 Insolvency: a glossary o f terms.
Creditors' approval Creditors approve fees by passing a resolution at a creditors' meeting. Unless creditors call for a poll, the resolution is passed if a simple majority o f creditors present and voting, in person or by proxy,
indicate that they agree to the resolution. Unlike where acting as committee members, creditors may vote according to their individual interests.
If a poll is taken, rather than a vote being decided on the voices or by a show of hands, a majority in number and value of creditors present and voting must agree. A poll requires the votes of each creditor to be recorded.
A separate resolution of creditors is required for approving fees for an administrator in a voluntary administration and an administrator of a deed of company arrangement, even i f the administrator is the same person in both administrations.
A proxy is where a creditor appoints someone else to represent them at a creditors' meeting and to vote on their behalf. A proxy can be either a general proxy or a special proxy. A general proxy allows the person holding the proxy to vote as they wish on a resolution, while a special proxy directs the proxy holder to vote in a particular way. A creditor will sometimes appoint the external administrator as a proxy to vote on the creditor's behalf. An external administrator, their partners or staff must not use a general proxy to vote on approval of their fees; they must hold a special proxy in order to do this. They must vote all special proxies as directed, even those against approval of their fees.
Calculation o f fees Fees may be calculated using one of a number of different methods, such as:
• on the basis of time spent by the external administrator and their staff
• a quotedfixedfee, based on an upfront estimate, or
• a percentage of asset realisations.
Charging on a time basis is the most common method. External administrators have a scale of hourly rates, with different rates for each category o f staff working on the external administration, including the external administrator.
If the external administrator intends to charge on a time basis, you should receive a copy of these hourly rates soon after their appointment and before you are asked to approve the fees.
The external administrator and their staff will record the time taken for the various tasks involved, and a record will be kept of the nature of the work performed.
It is important to note that the hourly rates do not represent an hourly wage for the external administrator and their staff. The external administrator is running a business—an insolvency practice—and the hourly rates will be based on the cost of running the business, including overheads such as rent for business premises, utilities, wages and superannuation for staff who are not charged out at an hourly rate (such as personal assistants), information technology support, office equipment and supplies, insurances, taxes, and a profit.
External administrators are professionals who are required to have qualifications and experience, be independent and maintain up-to-date skills. Many of the costs of running an insolvency practice are fixed costs that must be paid, even if there are insufficient assets available to pay the external administrator for their services. External administrators compete for work and their rates should reflect this.
These are all matters that committee members or creditors should be aware of when considering the fees presented. However, regardless of these matters, creditors have a right to question the external administrator about the fees and whether the rates are negotiable.
It is up to the external administrator to justify why the method chosen for calculating fees is an appropriate method for the particular external administration. As a creditor, you also have a right to question the external administrator about the calculation method used and how the calculation was made.
Report on proposed fees When seeking approval of fees, the external administrator must send committee members/creditors a report with the notice of meeting setting out:
• information that will enable the committee members/creditors to make an informed assessment of whether the proposed fees are reasonable
• a summary description of the major tasks performed, or to be performed, and
• the costs associated with each of these tasks.
Committee members/creditors may be asked to approve fees for work already performed or based on an estimate of work yet to be carried out.
If the work is yet to be carried out, it is advisable to set a maximum limit ('cap') on the amount that the external administrator may receive. For example, future fees calculated according to time spent may be approved on the basis of the number o f hours worked at the rates charged (as set out in the provided rate scale) up to a cap of $X. If the work involved then exceeds this figure, the external administrator will have to ask the creditors' committee/creditors to approve a further amount of fees, after accounting for the fees already incurred.
Deciding if fees are reasonable If asked to approve an amount of fees either as a committee member or by resolution at a creditors' meeting, your task is to decide i f that amount of fees is reasonable, given the work carried out in the external administration and the results of that work.
You may find the following information from the external administrator useful in deciding if the fees claimed are reasonable:
• the method used to calculate fees
• the major tasks that have been performed, or are likely to be performed, for the fees
• the fees/estimated fees (as applicable) for each of the major tasks
• the size and complexity (or otherwise) of the external administration
• the amount of fees (if any) that have previously been approved
• if the fees are calculated, in whole or in part, on a time basis:
• the period over which the work was, or is likely to be performed
• if the fees are for work that has already been carried out, the time spent by each level of staff on each of the major tasks
• if the fees are for work that is yet to be carried out, whether the fees are capped.
If you need more information about fees than is provided in the external administrator's report, you should let them know before the meeting at which fees will be voted on.
What can you do if you think the fees are not reasonable? If you do not think the fees being claimed are reasonable, you should raise your concerns with the external administrator. It is your decision whether to vote in favour of, or against, a resolution to approve fees.
Generally, if fees are approved by a creditors' committee/creditors and you wish to challenge this decision, you may apply to the court and ask the court to review the fees. Special rules apply to court liquidations.
You may wish to seek your own legal advice i f you are considering applying for a court review of the fees.
Reimbursement of out-of-pocket costs An external administrator should be very careful incurring costs that must be paid from the external administration—as careful as if they were dealing with their own money. Their report on fees should also include information on the out-of-pocket costs of the external administration.
If you have questions about any of these costs, you should ask the external administrator and, if necessary, bring it up at a creditors' committee/creditors' meeting. If you are still concerned, you have the right to ask the court to review the costs.
Queries and complaints You should first raise any queries or complaints with the external administrator. If this fails to resolve your concerns, including any concerns about their conduct, you can lodge a complaint with ASIC at www.asic.gov.au/complain, or write to:
ASIC Complaints P 0 Box 9149 TRARALGON VIC 3844
ASIC will usually not become involved in matters of commercial judgement by an external administrator. Complaints against companies and their officers can also be made to ASIC. For other enquiries, email ASIC through [email protected], or call ASIC's Infoline on 1300 300 630 for the cost of a local call.
To find out more For an explanation of terms used in this information sheet, see ASIC's information sheet INFO 41 Insolvency: a glossary o f terms. For more on external administration, see ASIC's related information sheets at www.asic.gov.au/insolvencyinfosheets:
• INFO 74 Voluntary administration: a guide for creditors
• INFO 75 Voluntary administration: a guide for employees
• INFO 45 Liquidation: a guide f o r creditors
• INFO 46 Liquidation: a guide f o r employees
• INFO 54 Receivership: a guide f o r creditors
• INFO 55 Receivership: a guide f o r employees
• INFO 43 Insolvency: a guide/or shareholders
• INFO 42 Insolvency: a guide f o r directors
• INFO 84 Independence o f external administrators: a guide for creditors
These are also available from the Insolvency Practitioners Association (IPA) website at www.ipaa.com.au. The IPA website also contains the IPA's Code of Professional Practice for Insolvency Professionals, which applies to IPA members.
NOTICE is hereby given that a meeting of creditors of the above company will be held at Grant Thornton, Level 18,145 Ann Street, Brisbane, Qid 4000 on Tuesday, 6 August 2013 at 11:00am.
AGENDA
1. To discuss the Liquidator's report to creditors;
2. Creditors to consider, and if thought fit, pass a resolution to approve the current remuneration of the Liquidator;
3. Creditors to consider, and if thought fit, pass a resolution to approve the future remuneration of the Liquidator;
4. Creditors to consider, and if thought fit, pass a resolution to approve an extended repayment plan from Synetec Pty Ltd; and
5. Any other business that may be lawfully brought forward.
Should you wish to attend the meetings via teleconference, please advise Ms Caitlin Wilkinson o f this office on (07) 3222 0209 prior to 5 August 2013.
DATED this 19th day o f July 2013
I
T /lvlicilael Level
18 145 Ann Street Brisbane QLD 4000
F O R M 532
I/We (7\Tote 1
A creditor o f Global Rule Pty Ltd (In Liquidation) hereby appoint:
Regulation 5.6.29
(name of credits?) address of creditor)
(name ofproxy)(Note 2) O f ('address ofproy Or in his absence, (name of alternative prn\y) O f (address ofalternativeproy)
As my/our special/general (Note 3) proxy to vote at the meeting of creditors to be held on 6 August 2013 or at any adjournment thereof.
I f special proxy please select O N E of the following: 1 To vote on all matters arising from the meeting
A N D / O R ALTERNATIVELY To vote specifically in the following manner:
a. "That the remuneration of the Liquidators, their partners and staff for work carried out in relation to the Liquidation of Global Rule Pty Ltd for the period 1 April 2012 to 14 July 2013 be increased from the limit of $50,000 (plus Goods and Services Tax) set at the adjourned meeting of creditors held on 11 May 2012 to $87,955 (plus Goods and Services Tax), and may be drawn to the extent o f available funds."
b. 'That the remuneration of the Liquidator, his partners and staff for work carried out in relation to Global Rule Ply Ltd (In Liquidation) be hereby calculated by reference to the current and future hourly rates of Grant Thornton-Recovery and Reorganisation Services. Such remuneration for the period 15 July 2013 to the finalisation of the Liquidation is to be capped at $40,000 excluding GST and disbursements, and should be drawn to the extent of available funds. In respect to remuneration calculated by reference to future hourly rates, any annual increase to hourly rates charged will not exceed lO% o f the current or prior year's hourly rates of Grant Thornton-Recovery and Reorganisation Services."
C. "Approve an extended repayment plan for the repayment of the balance o f the loan from Synetec Ply Ltd to 30 November 2013."
DATED this day of
Signature
coeporations Act 2001 ('6'wlth)
A P P O I N T M E N T O F PROXY CREDITORS MEETING
GLOBAL RULE PTY LTD ( IN LIQUIDATION)
A.C.N. 133 555 861
2013
4)
C E R T I F I C A T E O F WITNESS ( N O T E 5)
FOR AGAINST ABSTAIN
Li
El
El
El
El
El
I, of , certify that the above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him before he attached his signature or mark to the instrument.
DATED this day of 2013
Signature of Witness_____________________________
Description
Place of Residence
El
El
El
NOTE: 1. I f firm, strike our "I" and set out the flail name of the firm. 2. Insert the name, address and description of the person appointed. 3. If a special proxy add the words "to vote for" or the words "to vote against" and specify the particular resolution. 4. The signature of the creditor, contributory, debenture holder or member must not be attested by the person nominated as proxy. 5. This certificate is to be completed only where the person giving the proxy is blind or incapable of writing.
Australian Company Number: 133 555 861
FORM 534 ('oiporations Act (200 1)
Subregulation 5.6.48(3)
N O T I C E I N V I T I N G F O R M A L P R O O F O F D E B T O R CLAIM
GLOBAL R U L E P T Y LTD ( I N LIQUIDATION)
ACN: 133 555 861
Take notice that creditors of the above company, whose debts or claims have not already been admitted, are required on or before 31 August 2013 to prove their debts or claims and to establish any title they may have to priority, by delivering or posting to me at my address a formal proof of debt or claim in accordance with Form 535 or 536 containing their respective debts or claims. If you do not you may be excluded from:
a) the benefit of any distribution made before their debts or claims are proved or their priority is established; and
b) objecting to the distribution.
D A T E b this 19t}1 day o f July 2013
I M i a e 1 McCann Liquidator
Level 18 145 Ann Street Brisbane QLD 4000
F O R M 535
o1porations A c t 2001 (un/tb)
F O R M A L P R O O F O F D E B T O R CLAIM ( G E N E R A L FORM)
To the Liquidator of: Global Rule Pty Ltd (In Liquidation) ACN: 133 555 861:
1. This is to state that the company was, on 9 June 2011 and still is, justly and truly indebted
creditor and, (f applicable, the creditor's partners. Ifprepared bj an emplojyee or gent of the creditor, also insert a description of The occupation of /he creditoi) for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .dol lars and ............................cents. ABN o f the Creditor ....................................
Date Consideration (state how the debt Amount Remarks (include details of $ c substantiation of payment)
2. T o my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any satisfaction or security for the sum or any part o f it except for the following: (insert particulars of all securities held. I f the securities are on the property of the compa/y, assess the value of those securities. I f aiy bills or other negotiable securities are held, show them in a schedule in the followind form).
Date Drawer Acceptor Amount $ c Due Date
*3, I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.
*3 I am the creditor's agent authorised in writing to make this statement in writing. I know that the debt was incurred for the consideration stated and that the debt, to the best o f my knowledge and belief, remains unpaid and unsatisfied.
De1cte if this proof is made by the creditor personally.
I hereby authorise the Liquidators, or any subsequent capacity that may have, to give or send a notice or any other document electronically pursuant to Section 600G o f the Corporations Act.
El Yes El No
'ç GrantThornton An instinct for growth"
DECLARATION OF INDEPENDENCE, RELEVANT RELATIONSHIPS AND INDEMNITIES
GLOBAL RULE P T Y LTD ( IN LIQUIDATION) ACN 1 3 3 5 5 5 861 ("the Company") T h e "Global Rule Trust"
This document requires the Practitioner/s appointed to an insolvent entity, to make declarations as to:
A. their independence generally; B. relationships, including
the circumstances of the appointment; ii any relationships with the Insolvent and others within the previous 24
months; iii any prior professional services for the Insolvent within the previous 24
months; iv. that there are no other relationships to declare; and
C. any indemnities given, or up-front payments made, to the Practitioner.
This declaration is made in respect of myself, my partners and Grant Thornton Australia Ltd.
A. Independence
I, Michael Gerard McCann of Grant Thornton Australia Ltd have undertaken a proper assessment of the risks to my/our independence prior to accepting the appointment as liquidator in accordance with the law and applicable professional standards. This assessment identified no real or potential risks to my/our independence. I am not aware of any reasons that would prevent me from accepting this appointment.
B. Declaration o f Relationships
i. Circumstances o f appointment
In June 2010, Graham Killer and I were approached by ASIC to act as a Court appointed Receiver and Manager of the Company and each o f its Directors.
At this time, I had initial discussions with ASIC regarding their concerns as to the nature and solvency of the Company.
Prior to this, and from time to time, I have been asked by ASIC to provide advice, to act as a Court appointed Receiver and Manager, and or to act as Court appointed Liquidator in other unrelated matters.
The work undertaken during the Court Appointed Receivership engagement has assisted me in developing an understanding of the Company and its activities. The investigation was conducted in compliance with a Court Order and was not under the instruction o f ASIC.
Grant Thornton Australia Ltrnfted ASS 41 127 556 369
Grant Thornton Australia Limited is a nrernbnr tirrnaithin Grant Thornton International Ltd. Grant Thornton international Ltd and the marnhnr tirnao are not aaortsbaida partnership. Grant Thornton Austraha Limited, tognlrarwittr its subsidiaries and rotated entities, detloers its services independently in Australia.
Liability limited by a scheme approved under Professional Standards Legislation
Our Ref 1237597j.Doca
* GrantThornton An instinct for growtE
The report that we provided to the Court is not of the nature that it would be subject to review during the Liquidation. The work undertaken by my firm for the Court will not influence my ability to be able to fully comply with the statutory and fiduciary obligations associated with the Liquidation of the Company in an objective and impartial manner.
2
All other engagements are unrelated and does not impede on my independence.
No remuneration was received for the above pre-appointment advice.
ii. Relevant Relationships (excluding Professional Services to the Insolvent)
Neither I nor my firm, have, or have had within the preceding 24 months, any relationships with the Company, an associate of the Company, a former insolvency practitioner appointed to the Company or any person or entity that has a charge on the whole or substantially whole of the Company's property.
iii. Prior Professional services to the Insolvent
Neither I nor my firm, have provided any professional services to the Company in the previous 24 months.
iv. N o other relevant relationships to disclose
There are no other known relevant relationships, including personal, business and professional relationships, from the previous 24 months with the Company, an associate o f the Company, a former insolvency practitioner appointed to the Company or any person or entity that has a charge on the whole or substantially whole o f the Company's property that should be disclosed.
C. Indemnities and upfront payments
I have not been indemnified in relation to this administration, other than any indemnities that I may be entitled to under statute and I have not received any up-front payments in respect o f my/our remuneration or disbursements.
Dated this 19th djy of July 2013
I
Michael Cann
NOTES:
1. I f circumstances change, or new information is identified, I am/we are required under the Corporations Act and the IPA Code of Professional Practice to update this Declaration and provide a copy to creditors with my/our next communication as well as table a copy of any replacement declaration at the next meeting of the insolvent's creditors.
2. Any relationships, indemnities or up-front payments disclosed in the DIRRI must not be such that the Practitioner is no longer independent. The purpose o f components B and C of the DIRRI is to disclose relationships that, while they do not result in the Practitioner having a conflict o f interest or duty, ensure that creditors are aware of those relationships and understand why the Practitioner nevertheless remains independent.
A( GrantThornton An instinct for growth
GRANT THORNTON RECOVERY AND REORGANISATION SERVICES
Schedule of hourly charge out rates (excluding GST)
