The Federal Government has introduced legislation to  Parliament aimed at helping employees of abandoned companies to access their entitlements.

 

The Corporations Amendment (Phoenixing and Other Measures) Bill 2012 contains amendments that give the Australian Securities and Investments Commission (ASIC) the power to order the winding up of abandoned companies, allowing workers to access their entitlements.

 

“Under the General Employee Entitlements and Redundancy Scheme (GEERS), employees can only access their entitlements if a company has been placed into liquidation,” Parliamentary Secretary to the Treasurer David Bradbury said.

 

“These amendments will give ASIC the power to place a company into liquidation in a range of circumstances, including where ASIC has reason to believe that the company is no longer carrying on business or where a company has been deregistered but not liquidated.

“This means that the corporate watchdog can step in and wind up a company so that workers are not dudded out of their entitlements where directors have walked out on their business.”

In addition, the Bill implements an important part of the Government’s insolvency reform package by facilitating the establishment of a single online insolvency notices website.

“As part of the Gillard Government’s insolvency reform announced on 14 December 2011, insolvency notices will be required to be posted to a new website to be established as part of the ASIC website from 1 July 2012,” said Mr Bradbury.

“The establishment of the ASIC insolvency website will replace 53,000 newspaper advertisements over the next four years, making it easier for creditors to access information.

“While the regulations will set a fee for lodging notices on the ASIC website, overall this measure is expected to maximise returns to creditors and cut costs to industry by around $15 million over the next four years.”