media release (16-227MR)

ASIC winds up 13 abandoned companies owing more than $556,000 in employee entitlements

Published

ASIC has exercised its wind up powers appointing liquidators to 13 abandoned companies to assist employees gain access to the Fair Entitlements Guarantee scheme (FEG).

The appointment of liquidators also facilitates a full and proper investigation into the reasons why the companies failed and allows recovery of any voidable or unreasonable director-related transactions.

The 13 abandoned companies owe at least 27 employees a total in excess of $556,000 in employee entitlements. The following companies were wound up between 11 April to 7 July 2016:

Company Liquidator and Firm State

Trident Australasia Pty Ltd

Jason Tracy of Deloitte

WA

Koko Hair Qld Pty Ltd

Derrick Vickers and Darryl Kirk of PwC

QLD

Box Stallion Pty Ltd

Gary Fettes of Rodgers Reidy

VIC

Meats International Co Pty Ltd

Hugh Armenis of Bentleys

NSW

Sanai Trading Australia Pty Ltd

Hugh Armenis of Bentleys

NSW

Atlantis Farm Pty Ltd

Hugh Armenis of Bentleys

NSW

The Labour Barn Pty Ltd

Leigh Prior of Pitcher Partners

SA

Myclub Holdings Pty Ltd

Gary Fettes of Rodgers Reidy

VIC

Astra Manufacturing Pty Ltd

Jon Howarth of AS Advisory

VIC

Dunea Group Pty Ltd

Leigh Prior of Pitcher Partners

SA

RTO Qld Pty Ltd

Richard Hughes of Deloitte

QLD

Z Force Industrial Pty Ltd

Anne Meagher of SV Partners

QLD

Watershed NT Pty Ltd

Leigh Prior of Pitcher Partners

NT

Background

The FEG is a legislative safety net scheme funded by the Australian Government. It is designed to assist employees recover unpaid employee entitlements because of their employer company’s liquidation or bankruptcy. In addition, the Department of Employment operates the 'Fair Entitlements Guarantee Recovery Programme'; a programme designed to strengthen recovery activity of amounts advanced under the FEG Scheme. More information about the scheme is available here.

Some employees owed entitlements cannot access FEG because the companies’ directors are either unable to discharge their duties or abandoned their insolvent companies without putting them into liquidation. ASIC’s appointment of liquidators facilitates access to FEG for these employees. ASIC first used its powers in 2013 (refer: 13-233MR) and to date has wound up  84 companies that owed a total of 258 employees more than $4.4 million in entitlements.

Media enquiries: Contact ASIC Media Unit