find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Insolvencies on the rise: ASIC

Insolvencies on the rise: ASIC

Corporate insolvencies in Australia in the 11 months to the end of May rose 4.4 per cent on year, Australia's corporate regulator said. _x000D_

CORPORATE insolvencies in Australia in the 11 months to the end of May rose 4.4 per cent on year, Australia's corporate regulator said. 


The number of companies entering external administration has risen almost 6 per cent, according to new figures released by the Australian Securites and Investments Commission. 


ASIC’s senior executive leader of the Insolvency Practitioners team, Adrian Brown, said a strong increase in external administration appointments in June saw insolvencies increase to 5.9 per cent from 4.4 per cent for the 11-month period to May 2011, the final figures for the 2010-11 financial year show. 


"The feedback we’ve received from insolvency practitioners is that they’re seeing an increase in activity in the SME sector as the Australian Taxation Office tightens up on debt recovery. According to industry, finance availability is also negatively impacting business," Brown said. 


ASIC’s latest figures show the number of court liquidations and director initiated creditors voluntary liquidations are responsible for the overall rise in appointments nationally. 


The statistics show court liquidations in Australia rose 7.7 per cent. Voluntary liquidations initiated by directors were up 10.1 per cent. Receivership and voluntary administration appointments, Australia-wide, are down on last financial year. 


"While we saw an immediate fall in VA appointments in 2008 following the streamlining of the voluntary liquidation procedures, these latest figures suggest that a greater number of businesses couldn’t be resuscitated through the voluntary administration process or are being restructured outside of an external administration," said Brown.


The 2007-08 financial year saw a 5.6 per cent increase prior to the significant jump of 26.5 per cent in the 2008-09 year, reflecting the impact of the GFC. 


In 2009-10, ASIC recorded a drop of 7.2 per cent. "It’s interesting to note, however, that as a percentage of total company registrations, insolvencies are about half of one per cent for the last two financial years," Brown said. 



Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Insolvencies on the rise: ASIC
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...