Public Examinations: Not a Request, a Summons
What happens when people refuse to provide records or information to a liquidator? That is often when public examinations come into play.
A public examination is not just another request for information. It is a court examination held under the Corporations Act and used to investigate a company’s examinable affairs.
That can include recovering books and records, investigating voidable transactions, related party dealings, asset transfers and what directors and others knew and when.
An eligible applicant, usually the liquidator, can apply for a public examination. ASIC or a person authorised by ASIC can also apply.
The Court can require a person to attend and answer questions under oath and produce documents. It is not something a person can simply ignore because the questions are inconvenient.
Public examinations are usually expensive and are generally pursued where potential claims or recoveries are substantial, or where funding is available to investigate possible recoveries.
