ASIC announced on 13 February 2009 the successful prosecution of 206 company officers in the first half of the 2008–2009 financial year. (more…)

This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration. (more…)

ASIC media release 16-9-08 and comments

Former Gold Coast boat builder, Mr Marcel Shears, has been resentenced in the Southport District Court to four months imprisonment after failing to complete 200 hours community service imposed in July 2007. He will serve six weeks.

On 12 July 2007, Mr Shears, 37, was sentenced to 12 months imprisonment and immediately released upon entering a five-year good behaviour bond after pleading guilty to five charges of insolvent trading laid by ASIC. The Court also ordered he pay restitution and complete 200 hours community service within 12 months.

Background

In January 2005, Mr Shears was charged with five counts of insolvent trading amounting to $17,000. At the time of the alleged offence, Mr Shears was a director of Cabriolet Royale Pty Ltd which specialised in the business of building luxury pleasure boats for the United States market.

In August 2003, Cabriolet Royale was placed into liquidation following action taken by a US customer enforcing a judgment debt. ASIC alleged Mr Shears continued to build boats under the name ëCabrioletí, and dishonestly allowed the company to incur debts while insolvent.

This highlights the fact that ASIC is active in pursuit of directors that fail in their duties and engage in insolvent trading and phoenix type activity.

While the temptation is there for director in a difficult spot to behave improperly, often they do so because they do not understand the very serious ramification of their actions.

In this regard, Liquidation Direct are expert liquidators and specialists in insolvency law. With over 50 years combined experience, we are able to assist you in making the right decisions in difficult times. Liquidation Direct has a genuine 24 hour advice line which allows you to speak with an insolvency expert when it matters most – right now.

Call 1300 767 525 for free and confidential insolvency advice – 24 hours – everyday.

Excerpts from Daily Telegraph article 10-9-08 and comments

Almost 250 building firms have collapsed in Australia in the past 18 months according to credit agency Dun & Bradstreet. (more…)

Excerpts from News.com.au – article 7-10-07 and comments

As liquidators and bankruptcy trustees, insolvency experts generally, we are often confronted with questions from company directors and individuals†who have†concerns about their credit record being negatively affected.

The advice contained in this article is worthwhile and hence is listed in our blog. (more…)