ASIC has launched a new online portal specifically designed to meet the needs of stakeholders likely to be impacted by corporate insolvency.

The information is part of ASIC’s response to the increasing number of companies experiencing financial difficulty, or becoming insolvent, in the current economic environment.

ASIC Commissioner, Michael Dwyer, said, ‘When a company experiences financial distress or becomes insolvent, there are likely to be a wide range of people affected, including directors, creditors, employees, and often, shareholders and investors.

‘ASIC now provides specific information on its website to give greater clarity and assistance to these stakeholders , including direction to further advice and information’, he said.

The portal, which is available at www.asic.gov.au/insolvency, provides information specific to each stakeholder group about their rights and obligations and responds to frequently asked questions. It also assists stakeholders to understand the technical jargon of insolvency and outlines the most common forms of corporate insolvency administration.

‘ASIC aims to ensure that company directors are aware of their obligations to avoid trading while insolvent, and to take appropriate action, such as getting advice, at the first signs of difficulty. The consequences and impact of corporate insolvency, and flow-on effects to other stakeholder groups, can be mitigated or minimised if directors act early and responsibly’, Mr Dwyer said.

‘We encourage all company directors to familiarise themselves with this information and ensure they understand their responsibilities in relation to insolvent trading’, he added.

In addition to company directors, the website provides links for company creditors (for example, suppliers) and for employees to assist them in identifying possible signs of insolvency in companies with which they are involved.

For the first time, the website also includes new information for shareholders and investors who either own shares in, or have invested through, failed companies.

For insolvency practitioners, the portal includes existing website information about their registration and compliance obligations.

‘Company insolvencies are getting more complex and each circumstance is different. We recognise that the portal won’t be able to answer every question but we want to ensure people have easy access to clear and independent information about insolvency during these often stressful times’, Mr Dwyer said.

‘We encourage insolvency practitioners, and the representative bodies of the various stakeholder groups, to refer to this information in their liaison with clients and stakeholders and to provide links to this information on their own websites’, Mr Dwyer said.

Short URL’s are available for each stakeholder group, and general resources, as follows: