ASIC funding down the gurgler

The ASIC FY2019 annual report was released the other week, and unfortunately it is slim reading for Liquidators looking to ASIC to fund claims against dodgy directors/advisors.

By their own admission, YOY comparisons show that the litigation fund set up by ASIC has decreased c$600k since FY2018:

picb

Remember, this funding is designed to help liquidators appointed to no (or minimal) asset companies pursue dodgy transactions for the benefit of creditors.

During FY2019, ASIC received 8,000+ EX01 reports, of which 7,000+ reported misconduct:

pica

A fighting fund of just $2.9m, means liquidators are funded c$1,300 to investigate and pursue claims (assuming just 30% of these liquidations are without assets).

Filing fees for court are generally more expensive than this.

What’s the solution?

Maybe use proceeds from the sale of some of the 638 parcels of land currently being held on trust by ASIC for deregistered companies (see picture below)… I was surprised by the quantum!

picc

Maybe make the application process simpler … requiring IP’s to do most of the work before they can ask for funding is (in my view) the main cause for the stigma and trepidation

What do you want changed? 

insolvency svvoidables auslaw

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