interlocutory application to remove liquidators appointed or review decision of Registrar to appoint liquidators on the basis of a perceived conflict of interest
where liquidators act for several companies in a group with the same directors and the subject of the same or similar transactions and creditors
where replacement of liquidators would lead to inefficiencies in liquidation investigations
Quick Take
1A theoretical or potential conflict of interest arising from a liquidator's appointment across related companies in a corporate group is insufficient to warrant removal; an actual, real conflict must be demonstrated, consistent with ASIC v Westpoint Corporation and Re Chilia Properties.
2The independence of a liquidator is assessed not only at the time of appointment but also having regard to subsequent conduct; where an initially contemplated adverse position against a company was abandoned and the company was instead joined as a co-plaintiff, the potential for conflict was obviated.
3Efficiencies in liquidation investigations and the avoidance of disruption to complex related proceedings, together with the support of all unsecured creditors, weigh strongly against replacing liquidators where only a theoretical conflict is alleged.
