News / ASIC appoints company liquidators to facilitate employees’ access to entitlements /
ASIC appoints company liquidators to facilitate employees’ access to entitlements
19 December 2014
Nine companies have been wound up by the Australian Securities and Investments Commission (ASIC), allowing the companies' employees to gain access to the Fair Entitlements Guarantee scheme (FEG).
ASIC's actions have also initiated investigations by the liquidators into the reasons behind the companies' failures and instigated the potential recovery of any losses due to voidable or unreasonable director-related transactions. The nine companies in question owed more than $310,000 in employee entitlements.
The FEG acts as a Government funded safety net for employees of insolvent companies, however these benefits are often not accessible to employees where directors cannot discharge their duties or abandon insolvent businesses prior to liquidation. ASIC's ability to appoint liquidators counteracts these types of scenarios and provides FEG access to employees who would otherwise slip through the cracks.
For more information please contact:
Paul Lutvey | Partner
t +61 7 3224 0240
f +61 7 3224 0333