Unethical Behaviour by Liquidator Part II

Crap liquidator being more crap

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I posted a question a week or two ago asking for advice regarding unethical behaviour by a liquidator. In a nutshell they criticised my firm in a progress report for withholding information, despite the fact that I'd resigned from the appointment well before the defunct firm went into liquidation and had handed over all my papers roughly a year before the report was published.

(See https://www.accountingweb.co.uk/any-answers/unethical-behaviour-by-liqui... for more details.)

I thought I'd provide an update on this fun little experience. I complained to the liquidator and, after cunningly ignoring me for a week, I finally received a call from the person named in the report as the contact point for any complaints. She knew nothing at all about the case, but did at least seem embarrassed when I explained the situation to her. However since that one call I haven't heard from her again, and she hasn't responded to three follow up emails.

So I will be writing to all the names on the creditors list to point out the factual errors in the report and to say that I, as a creditor, no longer have confidence in the liquidator. I would have thought it would have been better if the liquidator had made the correction voluntarily, but it seems they're a bit busy.

What I've learned from the experience is this firm (and possibly other liquidators) just wants to act for as many defunct firms as possible and churn out cookie-cutter reports making them sound big and tough and as if they're actually doing something for the creditors. But in reality they don't want the inconvenience of actually having to do any work, including checking the factual accuracy of their little reports or in correcting their obvious mistakes.

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By Ruddles
24th Feb 2017 13:16

Do you feel better now?

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By MBK
24th Feb 2017 13:17

Oh yes - the insolvency world is unfortunately littered with these sort of cowboys.

We've complained to the ICAEW about one particular firm who buy up blocks of cases from the Official Receiver and then engage solicitors on a contingency fee basis to seek to (often wrongly) intimidate the shareholders or directors of the failed company into making settlements.

It is no more than extortion using menaces. But do the ICAEW do anything about it? I leave you to guess the answer!!

Still, at least I sleep at night.

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By bernard michael
24th Feb 2017 13:59

You're a bit unkind about ICAEW. They've just re-branded what more do you want

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