REP 428 Improving communication with directors of firms in liquidation
Released 18 March 2015.
This report was commissioned by ASIC and produced by Queensland Behavioural Economics Group (QuBE). It sets out the results of research altering letters sent to directors of firms in involuntary liquidation to encourage them to comply with their legal obligations to report information to their liquidators
This paper explores ways to increase compliance of directors of companies in liquidation with their legal obligations. Under sections 475, 530A, 530B, and 590 of the Corporations Act 2001, it is the legal duty of a company director to cooperate with a nominated liquidator if the company is in liquidation. In particular, directors have to:
- report on the affairs of their company,
- grant access to and hand over company books,
- provide information regarding company property, and
- assist the liquidator in all further matters.