Crown's Demetriou haunted by shadow director claims at failed Acquire. SMH 28/1/20 SarahDanckert

Crown Resorts director and newly appointed Crown Melbourne chairman Andrew Demetriou could be embroiled in litigation over fallen education group Acquire Learning & Careers, with liquidators in advanced stages of preparing a legal case over the firm's collapse.

Acquire's liquidator, Barry Wight of Cor Cordis, and his team have spent the past six months preparing the groundwork for a legal claim against Acquire's directors over breaches of their duties and insolvent trading, following examinations last year where former executives and directors gave evidence that Mr Demetriou was a key figure at the group.

News of the expected court case comes just days after Mr Demetriou was named the new chairman of Crown Resort's Victorian subsidiary, Crown Melbourne Limited, as the casino group reshuffled its board.

Crown's board rejig, and the demotion of John Alexander as executive chairman, comes amid governance concerns at the casino and allegations the group facilitated money laundering and organised crime, which has sparked inquiries in NSW and Victoria.

Acquire's liquidators could file court action as soon as May or June. Mr Demetriou declined to comment, but he has long claimed that he was only a member of the Acquire advisory board and not a director.

Mr Wight said he hoped to provide creditors with a substantive update in the coming months.

"Our investigations into a number of potential claims against Acquire Learnings directors, key officers, executives and third parties are now well advanced," he said.

Acquire, which marketed vocational education courses and ran its own private colleges, collapsed in May 2017 owing its creditors, including the federal Department of Education, $145 million.

The demise of Acquire followed a crackdown on private vocational education groups after it emerged many were rorting the system to take advantage of the generous government funding on offer.

In 2017 Acquire was found to have engaged in unconscionable conduct over its handling of students, following an investigation by the Australian Competition and Consumer Commission.

If liquidators can prove to a court that Mr Demetriou was a shadow director, it will allow liquidators to pursue him over claims it is bringing against the other directors.

Being a shadow director is not illegal in and of itself, however, liquidators are also expected to file a report with the corporate watchdog if they suspect any illegal activity.

Mr Demetriou has never formally been listed as a director of Acquire on ASIC records, but public examinations into the collapse of Acquire last year painted the former AFL boss as a key player.

His nephew Tim Demetriou, the co-founder of Acquire, last year told a court that his uncle was "executive chairman". During the same examination, Tim Demetriou also said his uncle was just an adviser to the group. He later fainted outside court.

The examinations also heard Mr Demetriou billed Acquire for his $900,000-a-year job at Acquire the night before it appointed administrators in May 2017.

Liquidators are also planning to pursue directors and shareholders over loans totalling $25 million that were made to shareholders of Acquire. This included loans to Mr Demetriou and Tim Demetriou who was a director and senior executive of Acquire.

Mr Wight said he hoped to provide creditors with a substantive update in the coming months.

"Our investigations into a number of potential claims against Acquire Learnings directors, key officers, executives and third parties are now well advanced."

A. Explain how a person may be identified as a shadow director. How does the law seek to ensure any person in that role does not abuse their position.

B. Acquire's liquidator, Barry Wight of Cor Cordis, and his team have spent the past six months preparing the groundwork for a legal claim against Acquire's directors. Explain the investigations that are required to be conducted by the appointed liquidator.