"Unfortunately, the
Banking Royal Commission wasn't asked to look at the role
of insolvency practitioners, and that was a missed
opportunity."
"Often, the
investigating accountants become the liquidators, so it's in
their interests to recommend liquidation because they get
another gig."
Kate Carnell, Small
Business Ombudsman
Last Thursday on October 10, the Small Business Ombudsman
announced a statutory inquiry, to be known as the Insolvency
Practices Inquiry, "to investigate if current insolvency
practices achieve the best possible outcome for small and family
businesses in financial trouble". It will be assisted by
a reference group, chaired by former senator John Williams, who
took a lead role in the 2010 senate inquiry into the regulation,
registration and remuneration of liquidators.
