ASIC has assisted employees gain access to the Fair Entitlements Guarantee 91AV (FEG) by exercising its wind-up powers and appointing liquidators to 17 abandoned companies in the 12-month period ending 30 September 2018.
Because ASIC appointed the liquidators, employees of these 17 companies can now apply to recover owed unpaid employee entitlements. The 17 abandoned companies owe at least 32 employees more than $570,000 in employee entitlements.
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 that can potentially be returned to creditors.
ASIC made the following nine appointments from a new panel of liquidators who can be appointed to abandoned companies.
|
Company |
Current panel liquidator and firm |
State |
|
Financial Wellness Pty Ltd Ìý |
Andrew Heard of Heard Phillips Ìý |
SA |
|
The Perfume Parlour West Lakes Pty Ltd Ìý |
Simon Miller of Clifton Hall Ìý |
SA |
|
Gladstone District Transport Logistics Pty Ltd Ìý |
James Imray of Rodgers Reidy Ìý |
QLD |
|
Controlability Pty Ltd Ìý |
John Goggin of Worrells Ìý |
NT |
|
Mansion Showgirls & Nightclub Pty Ltd Ìý |
Mitchell Herrett of RSM Australia Pty Ltd Ìý |
QLD |
|
Cardcorp HDP Pty Ltd Ìý |
Michael Billingsley of Deloitte Ìý |
NSW |
|
Metro Power Pty Ltd Ìý |
Michael De Rooy of FTI Consulting Ìý |
NSW |
|
DC2 Pty Ltd Ìý |
Paul Allen of FTI Consulting Ìý |
VIC |
|
Bosco Corporations Pty Ltd Ìý |
Shabnam Amirbeaggi of Crouch Amirbeaggi Ìý |
NSW |
Prior to February 2018, ASIC made eight appointments under the previous (now expired) panel as follows:
|
Company |
Expired panel liquidator and firm |
State |
|
The Le Page Group Pty Ltd Ìý |
Jason Tracy of Deloitte |
WA |
|
M&JS Pty Ltd Ìý |
Leigh Prior of Pitcher Partners Ìý |
SA |
|
Jeff's Shed Furniture & Rug Warehouse Pty Ltd Ìý |
Simon Wallace-Smith of Deloitte Ìý |
VIC |
|
Platinum Group Qld Pty Ltd Ìý |
Tracy Knight of Bentleys Ìý |
QLD |
|
Lac Operations Pty Ltd Ìý |
Vaughan Strawbridge of Deloitte Ìý |
NSW |
|
Dm Garden Creations Pty Ltd Ìý |
Ross Blakeley of FTI Consulting Ìý |
VIC |
|
Greenwood Pine Pty Ltd Ìý |
Steven Hernyk of Deloitte Ìý |
TAS |
|
Mechtune Pty Ltd Ìý |
Jason Tracy of Deloitte Ìý |
WA |
Background
The FEG is a legislative safety net funded by the Australian 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 Jobs and Small Business operates the 'FEG Recovery Programme'; a programme designed to strengthen recovery activity of amounts advanced under the FEG. More information about it is available .
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: ) and to date has wound up 110 companies.