ASIC commences proceedings against Stuart Ariff

The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Supreme Court of New South Wales against Mr Stuart Ariff, of Newcastle, New South Wales.

Mr Ariff is an official liquidator who operates under the name ëStuart Ariff Insolvency Administratorsí. In December 2007, following an application by ASIC, the Court made orders, by consent and without admission, removing Mr Ariff as administrator of Bulla Tip & Quarry Pty Ltd and Bulla Tip & Quarry Operations Pty Ltd (the Bulla Tip companies). At that time, ASIC announced that its investigations into a number of external administrations under the control of Mr Ariff were continuing (MR 07-324).

ASIC has now commenced proceedings under various protective and supervisory provisions of the Corporations Act, including ss447B, 447E and 536, requesting the Court inquire into the conduct of Mr Ariff as liquidator, administrator or administrator of a deed of company arrangement in relation to the Bulla Tip companies and nine other companies (listed in the schedule below). ASICís application also seeks declarations regarding Mr Ariffís performance of his duties as a registered liquidator, orders regarding the remedy of any defaults in the relevant administrations, and compensation in respect of fees and expenses as considered appropriate by the Court.

The matter has been stood over to 24 October 2008 for further evidence to be filed by ASIC in relation to the conduct of the administrations.

• Singleton Earthmoving Pty Ltd (in liquidation);
• Independent Powder Coating Pty Ltd (in liquidation);
• Carlovers Carwash Limited;
• Carlovers (Maroochydore) Pty Ltd;
• Carlovers Carwash (Aust) Pty Ltd;
• The Carwash Kings Pty Ltd;
• Zealous Creations Pty Ltd;
• Sid Fogg & Sons Pty Ltd;
• MDC Entertainment Pty Ltd;
• Bulla Tip & Quarry Pty Ltd; and
• Bulla Tip & Quarry Operations Pty Ltd.

Pursuant to ss447E and 536 of the† Corporations Act, ASIC, and other parties, may apply to the Court in circumstances where it appears to the applicant that the insolvency practitioner may not have been faithfully performing his or her duties, or where the practitionerís conduct may be prejudicial to the interests of creditors or members of a company. Under section 536, the Court may conduct an inquiry into the matter and conduct an examination of the liquidator. The Court may make such orders it considers appropriate and just, including compensation.

Background Corporations Act, ASIC, and other parties, may apply to the Court in circumstances where it appears to the applicant that the insolvency practitioner may not have been faithfully performing his or her duties, or where the practitionerís conduct may be prejudicial to the interests of creditors or members of a company. Under section 536, the Court may conduct an inquiry into the matter and conduct an examination of the liquidator. The Court may make such orders it considers appropriate and just, including compensation.