ASIC Reports On Corporate Insolvencies For The Last Three Financial Years

2012-13

2011-12

2010-11

• involving less than 20 employees

81%

78%

78%

• by industry

–  Construction

–  Other (business & personal services)

–  Retail trade

24%

24%

10%

22%

24%

10%

23%

23%

11%

• with estimated assets of $100,000 or less

85%

85%

84%

• with estimated liabilities of $250,000 or less

43%

42%

44%

• with an estimated deficiency of $500,000 or less

65%

64%

65%

2012-13

2011-12

2010-11

• by cause of failure

–          Poor strategic management of business

–          Inadequate cashflow or high cash use

–          Trading losses

42%

41%

32%

44%

40%

33%

44%

41%

33%

• with estimated dividends to unsecured creditors or less than 11 cents in the dollar

97%

98%

97%

2012-13

2011-12

2010-11

1. 1.    Insolvent trading

Y

Y

Y

1. 2.    Obligation to keep financial records

Y

Y

Y

1. 3.    Care & diligence – Directors’ & Officers’ duties

Y

Y

Y

2012-13

2011-12

2010-11

• % or reports where external administrators had evidence in their possession and believed that further enquiry warranted

13.5%

(1,253 rpts)

12%

(1,215 rpts)

11%

(851 rpts)

• Number of external administrator supplementary reports requested by ASIC to determine whether to commence an investigation

677

738

558