From www.corrs.com.au: Registered liquidators must exercise appropriate care and diligence to ensure that their appointment under section 436C of the Corporations Act 2001 is valid and serves a proper purpose, as highlighted in Patel v Pleash [2025] FCA 77.

The Federal Court ruled that appointing an administrator for debt recovery is improper and emphasized that failure to confirm the legitimacy of the appointment can lead to costs orders against the administrator.

This ruling underscores the importance of due diligence for administrators before accepting such appointments to avoid potential liability.