NATIONAL INSOLVENT TRADING PROGRAM
25 06 2007
NATIONAL INSOLVENT TRADING PROGRAM
Recently we met with the ASIC representatives who had visited Cairns to undertake the National Insolvent Trading Program. The program aims to make directors aware of the company’s financial position and their responsibilities therein if the company may be insolvent.
A director of a company that is selected is required to provide all documents requested under a Notice issued under either Section 30 or 33 of the ASIC Act. Generally the review will take place at the principal place of business of the company.
Generally most of the records requested will be retained by the ASIC officers. Where appropriate the ASIC may ask that the company approach an Insolvency Professional. In certain cases the ASIC may take action directly or seek enforcement action.
From 1 July 2006 to 28 February 2007, ASIC have conducted 308 visits to companies throughout Australia which have resulted in an Insolvency Practitioner having to be appointed on 36 occasions (11.7%).