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I suspect the reason for this resignation and several others (i.e. Neil Kinsella) is that the individuals involved wish to distance themselves from any allegations of wrongful trading (which could potentially be made by a future liquidator).

And or allegations by the SRA ( and Aus regulator) of breaching the following principles:

Principle 6: behaving in a way that maintains the trust the public places in you and in the provision of legal services.

Principle 8: run your business .....effectively and in accordance with proper governance and sound financial risk management principles.

Principle 2; acting with integrity

Principle 7: comply with legal and regulatory obligations and deal with your regulators and legal ombudsmen in an open and timely manner

and outcome 10.3 notifying the SRA promptly of any material changes to relevant information about you including serious financial difficulty

There you go SRA i have done your job for you .......go investigate

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