Assetless Administration Fund
The Assetless Administration Fund (the fund) was established by the Australian Government and is administered by ASIC.
The fund finances preliminary investigations and reports by liquidators into the failure of companies with few or no assets where it appears that enforcement action may result from the investigation and report.
A particular focus of the fund is to curb fraudulent phoenix activity.
The fund is designed to close the regulatory gap that arises when a failed company is not properly investigated. This can occur because liquidators are not obliged to incur any expenses, other than those necessary to comply with their minimum statutory duties, unless the company in liquidation has sufficient available property to fund it.
The fund enables a liquidator to carry out a proper investigation and report which will then assist the ASIC in deciding whether it will commence enforcement action.
Enforcement action may include Director Banning orders under Section 206F of the Act ($5,000 or less may be provided for this investigation from the fund) or other enforcement action involving material breaches of the Act such as phoenix activity, insolvent trading etc (the fund will provide amounts at its discretion on a case by case basis)
