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Rod Culleton maintains he is solvent and has warned he plans to appeal the finding that he is bankrupt.
Rod Culleton maintains he is solvent and has filed an appeal against the federal court’s finding that he is bankrupt. Photograph: Richard Waiwright/AAP
Rod Culleton maintains he is solvent and has filed an appeal against the federal court’s finding that he is bankrupt. Photograph: Richard Waiwright/AAP

Rod Culleton claims legal actions will save already vacant Senate seat

This article is more than 7 years old

Culleton files appeal against federal court’s bankruptcy finding and demands Senate president withdraw a notice declaring his seat vacant

Pauline Hanson has declared she has a replacement for Rod Culleton in the Senate if One Nation is allowed its pick, but Culleton has claimed last-ditch legal challenges may yet save his seat, declared vacant on Wednesday.

Late on Wednesday Culleton filed an appeal against the federal court’s finding on 23 December that he is an undischarged bankrupt and seeking a further stay on sequestration proceedings.

Culleton also demanded the president of the Senate, Stephen Parry, withdraw a notice declaring his seat vacant and threatening undisclosed legal action against Parry and media outlets for allegedly defamatory reports about his bankruptcy.

On Wednesday Parry wrote to the Western Australian governor notifying him that Culleton’s Senate seat is vacant, after receiving official notice from the federal court of Culleton’s bankruptcy.

The court put a 21-day stay on sequestration proceedings against Culleton, which Culleton is incorrectly claiming means he is not bankrupt until expiration of the stay.

On Wednesday Culleton wrote to Parry that his letter “asserting that I am currently bankrupt and therefore disqualified to sit as a senator ... is premature and should be withdrawn immediately”.

Culleton asserted that he remains solvent, warned Parry of the appeal he has now launched and the application to extend the stay.

He warned that on Thursday he would make an application to the high court “regarding another matter concerning yourself and that in the event you as the president refuse to withdraw the letter I may be left with no option but to join you in the high court application”.

In comments to Guardian Australia Culleton’s chief of staff, Margaret Menzel, denied that Culleton had been declared bankrupt because the stay had not expired and claimed his seat was not vacant.

Menzel refused to explain the nature of the legal action in the high court that Culleton had threatened, including against Parry.

Menzel has also written to the ABC claiming that reports Culleton is bankrupt and no longer a senator are “grossly defamatory and completely inaccurate”.

Culleton’s office last night threatened the ABC with legal action for reports describing him a bankrupt and an ex-senator pic.twitter.com/qeiWD1SYTe

— Frank Keany (@FJKeany) January 11, 2017

On Thursday Hanson told Channel Nine’s Today program she was “not happy” about Culleton’s political demise, describing it as a “debacle”.

Hanson said she was not aware of his financial woes when she picked him to run for the Senate.

In a tweet on Wednesday Hanson said if a casual vacancy is declared because of Culleton’s disqualification, she had “already chosen a great person to replace him”.

If a casual vacancy is declared because of Rod Culleton's disqualification I have already chosen a great person to replace him in the Senate

— Pauline Hanson (@PaulineHansonOz) January 11, 2017

But Hanson refused to tell Channel Nine the identity of her preferred candidate, citing uncertainty over whether One Nation will choose the replacement.

The selection of Culleton’s replacement depends on the outcome of a high court challenge of his eligibility to contest the 2 July election after a larceny conviction, which was later annulled.

If the high court rules Culleton was ineligible at the time of his election, it may order a vote recount which is likely to result in Culleton being replaced by his brother-in-law, Peter Georgiou, who was No 2 on the One Nation Senate ticket in WA.

But if the court finds Culleton was eligible to stand at the election there would be a casual vacancy under section 15 of the constitution and One Nation would be able to nominate another person for the seat.

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