The Administrative Review Tribunal (ART) has set aside a decision of the registered liquidator disciplinary committee (the committee) to cancel the liquidator registration of Richard Ernest Auricht.
The ART decided Richard Ernest Auricht's registration should instead be suspended for five years commencing on 23 June 2023, which was the date of the committee's original decision.
Mr Auricht originally had his registration cancelled by the committee as a result of drawing remuneration without creditor or court approval, failing to lodge documents with ASIC, and not having the experience, knowledge and abilities to act as a liquidator.
In handing down its decision, the ART agreed that Mr Auricht drew remuneration without approval and failed to comply with his reporting obligations to ASIC. The ART also found Mr Auricht lacked capacity to perform satisfactorily the functions and duties of a liquidator.
The ART found that Mr Auricht's subsequent seeking of court approval for remuneration did not remedy the fact he drew remediation without a determination. It also rejected his argument that ASIC should have intervened when he sought court approval for remuneration before it referred him for disciplinary action, noting that ASIC has 'no obligation to participate in the Supreme Court fee approval application.'
However, the ART considered that a five-year suspension was a more appropriate outcome, as Mr Auricht's conduct did not involve dishonesty and he had not previously been subject to disciplinary action.
ASIC has given effect to the ART's decision by suspending Mr Auricht's registration as a liquidator.
View the ART's decision on the Registered liquidator disciplinary decisions webpage.
Background
On 28 June 2023, a liquidator disciplinary committee decided that Richard Ernst Auricht's registration as a liquidator should be cancelled (23-187MR).
ASIC's referral to the Committee alleged Mr Auricht was not a fit and proper person to be registered as a liquidator, as he had failed to carry out adequately and properly his duties as a liquidator by drawing remuneration without creditor or court approval, was not lodging documents with ASIC, and no longer had the required qualifications, experience, knowledge and abilities.
