PrimeGlobal member firm Hall Chadwick recently won an important Australian federal court case with the key assistance of PrimeGlobal members.
Hall Chadwick were able to retain the services of a client with a win against ASIC (the Australian corporate regulator) after questions were raised about their global reach. Hall Chadwick were able to take advantage of personal and global connections that they had made through their PrimeGlobal membership in order to prove that they had a strong international presence.
An important part of Hall Chadwick's submission to the court was the firm’s membership of PrimeGlobal and its resources and offices world-wide that can be called upon. One of the key strengths of being a member of PrimeGlobal is the ability to access resources, insights and offices across the globe, at any moment. Read about Hall Chadwick's Journey below:
"Hall Chadwick's win in the Australian federal court is in no small way attributed to our PrimeGlobal membership. The partners involved contacted me to discuss our global coverage and the strength to put the argument before the court, that we had the coverage . This was a major plank of the argument by the Australian Corporate Regulator and the government tried to have Hall Chadwick replaced by KPMG, due in many respects to this issue. We retained the work which is a significant file." Robert Lissauer, Director, Hall Chadwick
"Following our appointment as Voluntary Liquidators of the the client by the sole shareholder on 29 September 2019, ASIC made an application to the Court to have our appointment terminated under Section 90-15 of the Insolvency Practice Rules and be replaced with KPMG as Provisional Liquidators (as well as being appointed as Provisional Liquidators over the other 2 entities that are subject to the Court proceedings). Some of the major reasons for ASIC’s application for our removal was based on the following points:
- Hall Chadwick was appointed by the sole shareholder and therefore was not independent. ASIC made assertions that the Liquidators should ‘appear to be independent’ of any interested parties;
- It would be a more efficient and cost effective to have 1 set of appointees over all entities and should any conflicts arise (which were numerous and material across all entities) then that sole set of appointees could seek directions from the bench and appoint Special Purpose Liquidators if needed; and
- Due to KPMG’s world wide presence (including offices in Cyprus and Israel) that they were best placed due to claims likely existing against parties located overseas.
In consultation with our external Queens Counsel (“QC”) and solicitors we undertook substantial works including affidavits and submissions to the Court to counter ASIC’s application. A major part of our submissions to the court was the firm’s membership of PrimeGlobal and its resources and offices world-wide that can be called upon. This was well received by the Court and the judge inquired to our QC whether we should be arguing to be appointed over all 3 entities due to our capabilities and knowledge of the matters (which was graciously declined due to our stance on the intrinsic conflicts which existed between all 3 appointments).
In a great outcome for the firm, the Court dismissed ASIC’s application and our appointment was affirmed, however, amended to being Court Appointed Liquidators following ASIC’s late amendment to their application that a Court Liquidator would allow an earlier relation back day."
Hall Chadwick is a chartered accounting group in Australia delivering advice on a comprehensive range of accounting, audit, tax, business advisory and specialist services including corporate finance advisory, insolvency, forensics and litigation support. We deliver focused services for international business establishing or operating in Australia and those expanding into the Asia Pacific region. We work in all industries from property, construction, agribusiness, mining and mining services to energy, financial services and investment and more. Hall Chadwick is one of Australia’s top 20 accounting firms. We collaborate the talent and skills of over 450 staff to deliver solutions across Australia. Each practice area is actively managed by our Directors, providing our clients with direct access to experts and the highest level of business advice.Learn more