Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

$410,000 in missing entitlements prompts spate of company wind-ups

11 April 2019 1 minute readShare

The corporate regulator has wound up several companies after finding they owed a combined $410,000 to at least 39 employees.

Using its wind-up powers, ASIC has appointed liquidators to five abandoned companies, according to a statement released this week.

These companies are NISS Technologies Pty Ltd in NSW, Jovawill Pty Ltd in Queensland, Rushci Pty Ltd in WA, Steel Project Services Pty Ltd in NSW and Surat Basin Group Pty Ltd in Queensland.

According to ASIC, abandoned companies are those where directors are unable to discharge their duties, or have abandoned their insolvent companies without first putting them into liquidation.

Appointing liquidators to the companies facilitates access to the government’s Fair Entitlements Guarantee scheme. This was launched to provide financial assistance to employees who have unpaid entitlements, or who lose their job due to liquidation or bankruptcy of their employer. You can read more about the scheme here.

“The appointment of liquidators also allows a full and proper investigation into the reasons why the companies failed and may assist the recovery of any voidable or unreasonable director-related transactions,” ASIC said in its statement.

“In addition, abandoned companies may be an indicator that the director has engaged in illegal phoenix activity.”


$410,000 in missing entitlements prompts spate of company wind-ups
mybusiness logo

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?