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30-Jul-2020
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Cancel [IPS 40-55(1)(c)] |
On 28 November 2019 the Inspector-General in Bankruptcy referred Ms Louise Thomson to a committee convened under Part 2 of Schedule 2 to the Bankruptcy Act (the Act). On 12 August 2019, the Inspector-General's delegate, Mr Kaura (the Delegate), had issued a show cause notice (SCN) to Ms Thomson under s 40-40 of the Schedule. The SCN contained two grounds:
The first ground was that Ms Thomson failed to carry out adequately and properly the duties of a trustee or any duties or functions that a registered trustee is required to carry out under a law of the Commonwealth or of a State or Territory, or under the general law, as set out in s 40-40(1)(l) of the Schedule.
The second ground was that Ms Thomson failed to comply with a standard prescribed for the purposes of subsection (4), under ss 40-40(1)(p) of the Schedule. In accordance with s 122 of Schedule 1 to the Insolvency Law Reform Act 2016, this is a reference to paragraph 2.3 of the Performance Standard, entitled "Conflicts of Interest", as formerly prescribed by "regulations made for the purpose of ss 155H(5) of the old Act"
The Committee has found that Ms Thomson failed to carry out adequately and properly her general law duty of independence and various statutory duties that she was required to carry out, in circumstances where these failures could have adversely affected the interests of creditors. She also failed to comply with a standard prescribed under the relevant regulations at the time concerning conflicts of interest
The committee decided that Ms Thomson's registration as a trustee should be cancelled The committee also decided that the Inspector-General in Bankruptcy publish the committee's reasons for its decision and its report. Consistent with section 40-65 of Schedule 2 of the Bankruptcy Act 1966, the Inspector-General in Bankruptcy has given effect to the committee's decision. The committee's report may be accessed below. |
