Judge's damning comments against a chartered accountant acting as liquidator

[Brendan Burgess]

Revenue has successfully had a liquidator removed from a liquidation

http://www.limerickpost.ie/2015/07/23/court-removes-limerick-account-as-liquidator-to-firm/

Mr Justice Murphy found that the liquidation had not been conducted in an efficient and cost effective manner and that the evidence suggested the Limerick accountant has a flawed understanding of the role and duties of a liquidator.

In his ruling, Mr Justice Murphy said that he was aware the effect the removal would have on Mr Fitzpatrick’s professional position but that such damage flowed directly from his own ineffectiveness.

And from the Irish Times

Part of the problem undoubtedly resulted from the liquidator’s “poor choices” of legal advisers, she said.

“Not one, not two, but three solicitors retained by him in the course of the liquidation have been struck off,” she said.

 

[WizardDr]

I note that the Judgment is not yet up on Courts.ie but the media have it. Bit unsatisfactory.

However I noted:

"...The judge also said that if the Revenue had exercised its rights as a member of the committee of inspection “more vigorously from the outset”, some, if not all, of the difficulties might have been avoided..."

The Committee can be formed at the meeting to appoint a liquidator and one wonders with Revenue in Limerick would there not have been a better result? The assumption here is that this was an insolvency situation. Also the non-appearance of Mr Fitzpatrick was noted and otherwise the Judge would have been slow to intervene.

 

[Bronte]

Deposit from failed purchaser 34K
Sold 479K

Total: 513

Article says there was 503K from that. So I'll go with 503K (must be auctioneer costs)

AIb owed 237 so 266 should be left, but the article says only 166 was left. So 100K went where.

45K conveyancing fees on a 489K sale ! ! ! ! ! ! ! !

Liquidator fees 79K ! ! ! ! !

45+ 79 = 124K in accountant and legal fees. Plus AIB 237 = 361 from sale proceeds of 503 leaves 142K for revenue presumably.

As expected liquidations are a licence to print money by professionals.

Will that accountant be investigaged by his professional body.