Insolvency practitioner sanctions: Lauren Louise Auburn 21 May 2024
On 21 May 2024 a Consent Order was made against Mrs Lauren Louise Auburn of Northampton, United Kingdom
Applies to England, Scotland and Wales
Documents
Details
Summary of complaint:
On around 27 June 2022 Mrs Auburn, in her capacity as Joint Administrator of A Limited, failed to comply with the requirements of the Statement of Insolvency Practice 16 (SIP16) as particularised in parts (a) – (l) of the complaint, contrary to the Fundamental Principle of Professional Competence and Due Care of the Insolvency Code of Ethics in that she:
a) Failing to adequately explain to creditors why the Joint Administrators’ proposals were not issued to creditors with the SIP16 statement;
and/or
b) Failing to provide a statement explaining the statutory purpose pursued, confirming that the transaction enables the statutory purpose to be achieved and that the outcome achieved was the best available outcome for creditors as a whole in all the circumstances;
and/or
c) Failing to provide full details of alternative options considered, both prior to and within formal insolvency by the insolvency practitioner and the company, and on appointment the administrator with an explanation of the possible outcomes;
and/or
d) Failing to provide a detailed narrative explanation as to why the pre-pack was pursued and why it was beneficial for creditors;
and/or
e) Failing to provide full details of charges registered against the Company;
and/or
f) Failing to adequately explain to creditors how long pre-administration marketing activities lasted, the nature of the marketing process undertaken and why the Joint Administrators deemed the marketing to have been adequate;
and/or
g) Failing to disclose details of the professional qualifications of the valuers and confirmation that they have confirmed their independence and that they carry adequate professional indemnity insurance;
h) Failing to provide full disclosure of the valuations of assets and an explanation of the value achieved of the assets compared to those valuations;
and/or
I) Failing to explain to disclose that no valuation had been obtained for the goodwill/intangible assets and the reasons why;
and/or
J) Failing to explain to disclose that no valuation had been obtained for the goodwill/intangible assets and the reasons why;
and/or
K) Failing to disclose the identity of the Purchaser of the assets, who was connected to the director;
and/or
l) Failing to append the Evaluator’s report to the SIP16 statement or the Joint Administrators’ Proposals.
In doing so, Mrs Lauren Louise Auburn failed to comply with the fundamental principle of professional competence and due care, R2103.1 in the Insolvency Code of Ethics. Mrs Lauren Louise Auburn is therefore liable to disciplinary action pursuant to disciplinary Bye-law 4.1