The Australian Securities & Investments Commission (ASIC) revealed that in recent months, it has placed 12 companies into liquidation. The aim was to help the companies’ employees recover more than $335,000 in entitlements.
Since July last year, ASIC has used its wind-up powers to liquidate 19 other companies.
While company directors usually appoint liquidators for their insolvent companies on a voluntary basis, ASIC has the authority to appoint liquidators to companies when the directors are unable to discharge their duties or have abandoned their insolvent companies.
The substantial number of ASIC wind-ups corresponds with the upsurge in wind-up applications made against small- to medium-sized businesses by the Australian Taxation Office (ATO). In May 2015 alone, 556 businesses received wind-up applications from the ATO – more than double the amount of applications lodged by the ATO this time last year.
Although an ATO-issued wind-up application does not force a company into liquidation, it is a tell-tale sign of corporate insolvency.
If your company has received a notice from the ATO or is facing insolvency, CRS Insolvency Services can help. At CRS, we offer a free initial consultation to help you determine whether a voluntary liquidation is the best solution for your company or whether alternatives such as voluntary administration are more appropriate.
For free immediate professional advice, call our team of insolvency practitioners on our 24 hour hotline now at 1800 210 073. Or, if you prefer, you can email us at firstname.lastname@example.org and we will get back to you as soon as possible.