NEW REVELATIONS IN THE Q1 HOMES COLLAPSE CASE
Menzies Advisory continues in the Federal Court in Brisbane in the case of Queensland One Homes. As the story unfolds in relation to the water damaged servers which held important financial information, Michael Caspaney, our Principal Registered Liquidator, recalls how he discussed the issue with the creditors earlier in the year.
Without the complete financial records, it is difficult for Menzies Advisory as the appointed liquidators and the legal team to fully understand the collapse of the business which went into administration in July 2017, carrying debts of more than $5.8 million.
Read the full article from the Gold Coast Bulletin below or visit their website to read the original article.
This clipping is from the October 5 issue of The Gold Coast Bulletin Digital Edition. To subscribe, visit https://www.goldcoastbulletin.com.au/.
Shock claims over Q1 Homes collapse
Gold Coast Bulletin – Saturday, 5 Oct 2019 – Page 11
FAILED Gold Coast builder Paul Callender told his lawyer that servers with crucial financial information may “come to harm” just weeks before they were found water damaged in the back of a ute, a court was told.
Mr Callender previously denied damaging the servers during the five-day hearing into the collapse of builder Queensland One Homes in the Federal Court in Brisbane this week.
Liquidator Michael Caspaney had told creditors at a meeting in September that he had “faced difficulties” collecting records on Q1 Homes because the servers had been damaged.
Q1 Homes, which counts Mr Callender as sole director, collapsed in July 2017, owing more than $5.8 million to over 130 tradies and taxpayers, and leaving families with incomplete homes. The hearing is the fulfilment of an election eve funding promise from the State Government and seeks to examine Q1 Homes’ business model in detail and what led to the company’s failure, and also to look into the collapse of the Cullen Group.
Solicitor Daniel Wignall appeared yesterday to give evidence on the final day of the inquiry.
On July 26, the same day liquidator Anne-Marie Barley was replaced by Mr Caspaney, Mr Wignall met with Mr Callender.
Edward Moon, counsel for the inquiry, asked Mr Wignall about the discussion, which concerned delivering servers that contained crucial financial records for Q1 Homes to Mr Caspaney.
“You made a note: ‘I said you need to cough this up. PC (Paul Callender) said it might come (sic) some harm before he delivers it’ ?” Mr Moon asked.
“If that is what the final note says,” Mr Wignall responded.
Mr Moon said: “Do you recall that discussion?”
Mr Wignall: “I don’t particularly recall that discussion .”
Mr Moon: “Do you recall – and you say from your notes
– if the servers had already come to some harm or whether they would come to some harm?”
Mr Wignall: “Privilege. I think the discussion was centred around ‘would’ come (to some harm).”
Mr Wignall agreed with Mr Moon that he had understood the servers had not been damaged at that point.
Mr Caspaney reported to a creditors’ meeting in September that he had found the servers in the back of a ute in August.
Q1’s server, which contained two hard drives, was water damaged and the files were unable to be recovered.
Yesterday was the final day of the inquiry, which has seen Mr Callender, his wife Amber Callender, accountant Kevin Dellow, and Cy Pearson of FRD Homes Pty Ltd all give evidence in relation to Q1 Homes.
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Registered Liquidators are experienced accountants, licenced and regulated by the Australian Securities and Investments Commission (ASIC). They are appointed to take over the running of insolvent or failed companies and oversee the final period before all affairs are finalised and the trading body is dissolved. Registered Liquidators must be appointed in the event of a Creditors Voluntary Liquidation to resolve any debts accrued by the company in the most efficient way possible. A Creditors Voluntary Liquidation (CVL) is the most common liquidation appointment type. In the event of a company entering insolvent external administration through CVL, it is the task of a Registered Liquidator to manage the finances and affairs of the body in a fiduciary capacity. After an Extraordinary General Meeting between the shareholders of a company, a Special Resolution will be passed which symbolises the instigation of the process by which the company will be wound up: liquidation. The directors, creditors and shareholders then step away from the organisation which has entered liquidation and their responsibilities are passed to a Registered Liquidator. This professional winds up all ongoing affairs which can include the collection of any outstanding debts and the disposal of company-owned assets. A Registered Liquidator must provide a document titled Consent to Act as Liquidator before they are appointed. Throughout all liquidations, the Registered Liquidator must file relevant documents with ASIC as well as providing ASIC with their yearly return. This enables the Commission to ensure only the highest quality of Registered Liquidators are operating and providing services throughout Australia. ASIC keeps a Register of Liquidators under the Corporations Act 2001 upon which every person is provided with a Registered Liquidator Number. In order to be registered, the person must demonstrate their relevant qualifications, experience, abilities and knowledge. Each registration is valid for 3 years, after which the Liquidator must reapply to maintain a valid license. All Registered Liquidators hold an accountancy degree as well as valid membership to the Institute of Chartered Accountants and/or CPA Australia. In the event of an organisation becoming insolvent, the appointment of a qualified, experienced and professional Registered Liquidator will ensure the subsequent process of winding up the company is completed correctly and responsibly. A Registered Liquidator is capable of completing this complex task efficiently and with minimal unnecessary stress to the directors and shareholders. For more information, contact Menzies Advisory Liquidators & Receivers where our Principal is a Registered Liquidator, Official Liquidator and has been a Certified Practicing Accountant for over 35 years.
Sometimes shareholders and company directors decide to cease trading despite the continued viability of the company. When this decision has been made, it is best to bring in external administrators to complete the Members’ Voluntary Liquidation process. By hiring qualified and experienced professionals, the process of finalising all company affairs, deregistering your company and the distribution of remaining funds amongst shareholders will be completed in a timely, commercially beneficial and legally correct fashion. While the terms ‘administration’ and ‘liquidation’ are most often associated with insolvent companies, it is also possible for the affairs of solvent companies to be wound up in this matter. There are various reasons why a business may choose to wind up rather than be sold as a going concern or continue trading. These include: Redistributing capital tax free Restructuring a company Business is no longer trading/required Bringing a company to its legal end – once deregistered it cannot be reinstated When a reason is decided upon, the majority of directors are obliged to sign a Declaration of Solvency form, stating the company is in a position to pay all existing debts within the upcoming year. Dormant companies may also be deregistered through this external administration process. Winding up a solvent company through external administration is easier and simpler than an insolvent company because, by definition, the company is in a position to repay any and all outstanding debts. 75% of company members are required to vote in favour of bringing in an external administrator at a meeting in regards to the Special Resolution. Once a company has entered the Members’ Voluntary Liquidation, the company can begin to be wound up by an external administrator. The appointed administrator will meet with any creditors and take care of any legal paperwork with the court, government and ATO. Once a company has been wound up, the remaining value of the assets can be distributed among shareholders. At this point the company will be legally deregistered. The external administrator is, by definition, independent and impartial. Their sole task is to preserve the company’s assets, comply with all legal obligations and return all funds to creditors and/or shareholders. Therefore, the external administrator cannot be someone with a conflict of interest or some form of duty within the company itself. Impartiality ensures the correct protocols are followed and the liquidation is completed in compliance with all laws. If you are considering placing your solvent company into voluntary external administration, contact Menzies Advisors today and find out more about how our expert liquidators and administrators can help wind up your company as quickly and commercially successfully as possible.
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
Menzies Advisory in Gold Coast Brisbane Melbourne and Sydney are specialist Liquidators
