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Mediterranean Olives Financial Pty Ltd v Loaders Traders Pty Ltd (Subject to Deed of Company Arrangement) (No 2) [2011] FCA 178

This case arises from a creditor challenging the adequacy of investigations undertaken by the Administrator. The Court prescribed that an investigation into a proposal and the affairs of a company were to adopt a critical and evaluative approach based upon the experience and judgement of the Administrator.  This approach was articulated in the reported case (for those of you wanting to undertake some further reading).  Fortunately for the Administrator, the manager on the file had made a file note that had usefully set out in detail the steps and investigations undertaken.  This file note was critical in satisfying the Court that the Administrator did not rely solely or uncritically on information obtained from the director, the company’s accountant or financial advisor, but looked for inconsistencies and verified the information.

 My takeaway from this is that we all do the work, so why not take the time to document what you did.  A detailed note held on file is much more useful than attempting to recall from memory what you did (what may be several months after the fact)  

 Any thoughts?

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