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Tuesday 12 September 2017

17-310MR ASIC winds up 11 abandoned companies owing more than $650,000 in employee entitlements

During the period March to August 2017, ASIC assisted employees gain access to the Fair Entitlements Guarantee scheme (FEG) by exercising its wind-up powers and appointing liquidators to 11 abandoned companies.

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 11 abandoned companies owe at least 29 employees in excess of $650,000 in employee entitlements. The companies are:

Company

Liquidator and Firm

State

The Promolounge Pty Ltd

Robert Woods of Deloitte

VIC

Refined Project Management Pty Ltd

Michael Carrafa of SV Partners

VIC

Duramic Pty Ltd

Hugh Armenis of Bentleys Corporate Recovery

NSW

Commercial Monitors Australia Pty Ltd

Shane Cremin of Rodgers Reidy

VIC

Coes Company Australia Pty Ltd

Anne Meagher of SV Partners

QLD

Casselson Pty Ltd

Ross Blakeley of FTI

VIC

EPS Worldwide Au Pty Ltd

Tracy Knight of Bentleys Corporate Recovery

QLD

51Pay Pty Ltd

Timothy Norman of Deloitte

VIC

Superior Exhaust Pty Ltd

Gary Fettes of Rodgers Reidy

VIC

Bread Alone NQ Pty Ltd

Derrick Vickers of PwC

QLD

TLT Constructions Pty Ltd

Leigh Prior of Pitcher Partners

SA

Background

The FEG is a legislative safety net scheme funded by the Commonwealth Government. It is designed to assist employees recover owed 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 it 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 95 companies that owed at least 287 employees more than $5 million in entitlements.

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Last updated: 12/09/2017 11:18