Liquidators of McLaughlins Financial Services Limited (McLaughlins) have sought urgent Federal Court assistance in the winding up of the Octaviar Group subsidiary after receiving an eleventh hour complaint from one of its directors.
Last week, liquidators William Fletcher and Katherine Barnet sought to fast track orders in the New South Wales Federal Court to proceed with a creditors’ wind-up of McLaughlins and commence public examinations into the actions of company directors.
However, the creditors’ wind-up orders were stalled after liquidators received a complaint from David Anderson.
On Friday 11 June, Anderson, one of the directors set to face the examinations, contacted the liquidators by letter questioning whether their appointment had been confirmed by the creditors of the company, court documents said.
Anderson claims that at a meeting he chaired of company members on 23 November 2009, a special resolution was unanimously passed that the company be wound up. At the time, the company also resolved to appoint Fletcher and Barnet as joint and several liquidators of the company.
The minutes of the meeting also found that Anderson said “that in the opinion of the directors the company was solvent”.
The liquidators claim that as Anderson failed to provide a declaration of solvency it was necessary to move for a creditors’ voluntary winding up of the group, documents said.
Under a creditors’ voluntary winding up, the liquidator is required to seek approval from the company’s creditors.
The liquidators claim that as no proof of solvency was produced they were unable to send creditors the notice of meeting, a summary of the affairs of the company, or a list setting out the names of all creditors, court documents said.
The liquidators said that despite the failure of creditors to attend the company meeting, the meeting still occurred and so satisfied their request for a creditors’ voluntary winding up.
The Federal Court is yet to hand down its verdict.
McLaughlins was founded in 1999 and was a member of the group of companies known as the MFS Group, which was later renamed the Octaviar Group.
The Octaviar Group was placed in liquidation last year.
