ASIC launches online insolvency
portal
The Australian Securities and
Investments Commission (ASIC) has launched a new online portal specifically
designed to meet the needs of stakeholders likely to be impacted by
corporate insolvency.
The information in this portal is
part of ASIC’s response to the increasing number of companies experiencing
financial difficulty, or becoming insolvent, in the current economic
environment.
ASIC Commissioner, Michael Dwyer,
said, ‘When a company experiences financial distress or becomes insolvent,
there are likely to be a wide range of people affected, including directors,
creditors, employees, and often, shareholders and investors.
‘ASIC now provides specific
information on it’s website to give greater clarity and assistance to these
stakeholders, including direction to further advice and information’, he
said.
The portal, which is available at
www.asic.gov.au/insolvency,
provides information specific to each stakeholder group about their rights
and obligations and responds to frequently asked questions. It also assists
stakeholders to understand the technical jargon of insolvency and outlines
the most common forms of corporate insolvency administration.
‘ASIC aims to ensure that company
directors are aware of their obligations to avoid trading while insolvent,
and to take appropriate action, such as getting advice, at the first signs
of difficulty. The consequences and impact of corporate insolvency, and
flow-on effects to other stakeholder groups, can be mitigated or minimized
if directors act early and responsibly’, Mr Dwyer said.
‘We encourage all company directors
to familiarize themselves with this information and ensure they understand
their responsibilities in relation to insolvent trading’, he added.
In addition to company directors,
the website provides links for company creditors (for example, suppliers)
and for employees to assist them in identifying possible signs of insolvency
in companies with which they are involved.
For the first time, the website also
includes new information for shareholders and investors who either own
shares in, or have invested through, failed companies.
For insolvency practitioners, the
portal includes existing website information about their registration and
compliance obligations. |
‘Company insolvencies
are getting more complex and each circumstance is different. We recognize
that the portal won’t be able to answer every question but we want to ensure
people have easy access to clear and independent information about
insolvency during these stressful times’, Mr Dwyer said.
‘We encourage insolvency practitioners,
and their representative bodies of the various stakeholder groups, to refer
to this information in their liaison with clients and stakeholders and to
provide links to this information on their own websites’, Mr Dwyer said.
Short URL’s are available for each
stakeholder group, and general resources, as follows:
• Company directors www.asic.gov.au/insolvency-directors
• Creditors www.asic.gov.au/insolvency-creditors
• Employees www.asic.gov.au/insolvency-employees
• Shareholders www.asic.gov.au/insolvency-shareholders
• Investors www.asic.gov.au/insolvency-investors
• Liquidators www.asic.gov.au/insolvency-liquidators
• Resources www.asic.gov.au/insolvency-resources
ASIC has Misconduct & Breach
Reporting (M&BR) where complaints to ASIC are registered, considered and
responded to.
ASIC has reported that they have
seen a marked increase in complaints this year, which has most probably
occurred due to the downturn in the Australian economy. To assist in the
consideration and analysis of important points of contact, ASIC has
introduced a keyword classification for incoming misconduct and breach
reports.
A number of high profile matters
have generated high volumes of contacts to ASIC over this last year, such as
Storm Financial, City Pacific, Westpoint, Timbercorp, Opes Prime, Babcock &
Brown, to name a few.
In addition the number of companies
entering external administration has also increased, with approximately
1,100 companies at the end of last year, the highest since ASIC commenced
publishing monthly insolvency statistics in December 2001.
ASIC has commented that complaints
relating to alleged insolvent trading have been strong this year, as have
concerns that companies have failed to lodge company documents/reports.
© Australian Securities & Investment
Commission. Reproduced with permission.
Disclaimer:
The material should not be relied upon. Super Matters, any
Australian Member, any related entity of those persons, or any of their
officers employees or representatives, will not be liable for any loss or
damage arising out of or in connection with the material contained in this
publication. |
