LIQUIDATORS, generally, can be trusted as they are licensed professionals regulated by legal frameworks to manage company closures, but their duty is to creditors, not company directors. They are legally obligated to act independently and responsibly, with potential for personal liability for misconduct, ensuring transparency in asset disposal.
A liquidator is an individual or entity appointed to wind up a company’s affairs—typically during bankruptcy—by managing its assets and liabilities.
They step in when a company is closing, representing it in lawsuits, selling off assets, and paying off creditors. Liquidators may be appointed by a court, creditors, or shareholders and are essential in ensuring a smooth liquidation process by overseeing assets and addressing claims or lawsuits.
This question came to light at a recent chartered accountant’s workshop, in Kenya after the issue of Peter Amos who plead guilty to misappropriating funds from five companies over a six-year period for his own benefit two years ago.
The former liquidator was sentenced to four years in prison after pleading guilty to stealing over $3 million in client funds to fund his personal and business expenses.
The time has come to make a tough decision. You think your company could be insolvent, and there isn’t much time before creditors may try to force it on you.
You want to make the right choice and suspect it might be voluntary liquidation. Yet, you’re reluctant to start the liquidation process because you’re unsure what it entails. How would it affect you, your personal finances, family, staff, and future?
You have heard so many different accounts of liquidation and bankruptcy that you don’t know what to believe. All you know is that you hope there’s a way to save your business, and if not, exit it with the least possible damage.
Between 2016 and 2022, Peter Andrew Amos, owner of Amos Insolvency, stole funds across five companies while serving as either their external administrator or liquidator.
In a sentencing hearing, District Court of NSW judge Robyn Tupman said Amos committed a “significant breach of trust”.
Tupman sentenced Amos to four in jail with a non-parole period of two years. Upon his release, Amos would also be banned from managing corporations for five years.
Amos was a liquidator between 2006 and May 2023 and founded Amos Insolvency in 2008.
He was appointed as voluntary administrator, and later as deed administrator of a deed of company arrangement for companies Mikcon Employment Servics, TPC and Conomi Group.
He was also a liquidator of POW 4×4 and A-Force Electrics.
The court heard that from 6 October 2016 to 31 December 2022, Amos transferred over $3 million from the accounts of Mikcon, TPC, POW, A-Force and Conomi Group to his insolvency business.
Once transferred, the funds were used for his own benefit and to pay unrelated expenses of Amos Insolvency.
The court heard “Amos and Amos Insolvency were not entitled to the funds, as all approved remuneration for Amos in the administrations had been paid, and no additional remuneration determinations had been made by the creditors of the companies,” ASIC said.
During that time, ASIC also issued Amos with a direction to not accept further insolvency appointments in April 2022 due to his failure to lodge outstanding documents relating to the administration of Mikcon.
Amos requested that his registration as a liquidator be suspended after ASIC launched an investigation into his affairs.
The suspension took effect from 4 February 2023 and turned into an automatic cancellation when he failed to renew registration by 11 May 2023.
Amos was then charged with four offences of dishonestly using his position as an officer of a company to gain an advantage for his business and himself contrary to s184(2)(a) of the Corporations Act.
A further two offences were included on a schedule to be taken into account by the court on sentence.
Here are specific examples and scenarios based on recent reports:
- Peter Andrew Amos (Australia): A former liquidator and owner of Amos Insolvency, Peter Amos was sentenced to four years in prison in December 2024 for stealing over $3 million from five different companies between 2016 and 2022. He used the funds for personal and business expenses, and, according to the court, the theft was driven by alcohol and gambling abuse.
- Tariomix Liquidators (South Africa): Liquidators for the failed cryptocurrency platform Tariomix (linked to Louis Liebenberg) have been accused of abusing their power by conducting “relentless” and, at times, unlawful asset seizures. Reports indicate they obtained search and seizure warrants for properties and personal items (like furniture) unrelated to the company’s affairs.
- First Guardian Liquidators (Australia): Following the collapse of the First Guardian Group in 2025, liquidators FTI Consulting identified that funds were heavily commingled, with money moving daily between accounts, and that “insufficient funds” would exist to meet creditor claims. The report noted over $40 million was paid to third-party marketers from the fund itself, with allegations that the scheme operated similarly to a Ponzi scheme.
- Arafas Mtausi Gwaradzimba (Zimbabwe): Appointed as the liquidator for Sagit Stockbrokers (Pvt) Ltd in 2008, Gwaradzimba faced legal challenges regarding his handling of the liquidation, specifically involving disputes over the delivery of shares and his personal liability in the process.
- Trust Bank Provisional Liquidator (Zimbabwe): In 2014, the Deposit Protection Corporation (DPC), acting as the provisional liquidator, faced a legal battle after calling for claims despite a high court reprieve granted to the bank. The bank challenged the, alleging that the liquidator’s actions were premature and that they were not acting in the best interests of depositors.
