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Thursday 17 October 2013

13-277MR Attachment - ASIC reports on corporate insolvencies 2012-13

Profile of companies subject to external administration

Profile of company

2012–13

2011–12

2010–11

% of reports involving less than 20 employees

81%

78%

78%

% of reports by industry

24% - Construction
24% - Other (business & personal) services
10% - Retail trade

24% - Other (business & personal) services
22% - Construction
10% - Retail trade

23% - Other (business & personal) services
23% - Construction
11% - Retail trade

% of reports with estimated assets of $100,000 or less

85%

85%

84%

% of reports with estimated liabilities of $250,000 or less

43%

42%

44%

% of reports with an estimated deficiency of $500,000 or less

65%

64%

65%

Causes of company failure

 

2012–13

2011–12

2010–11

% of reports by cause of failure

42% - Poor strategic management of business
41% - Inadequate cashflow or high cash use
32% - Trading losses

44% - Poor strategic management of business
40% - Inadequate cashflow or high cash use
33% - Trading losses

44% - Poor strategic management of business
41% - Inadequate cashflow or high cash use
33% - Trading losses

Estimated dividends

 

2012–13

2011–12

2010–11

% of reports with estimated dividends to unsecured creditors of less than 11 cents in the dollar

97%

98%

97%

Possible misconduct

 

2012–13

2011–12

2010–11

Top 3 alleged possible misconduct

  1. Insolvent trading
  2. Obligation to keep financial records
  3. Care & diligence - Directors’ & officers’ duties.
  4. Insolvent trading
  5. Obligation to keep financial records
  6. Care & diligence - Directors’ & officers’ duties.
  7. Insolvent trading
  8. Obligation to keep financial records
  9. Care & diligence - Directors’ & officers’ duties.
   

Further enquiry warranted by ASIC

 

2012–13

2011–12

2010–11

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

13.5% (1,253 reports)

12% (1,215 reports)

11% (851 reports)

No of external administrator supplementary reports requested by ASIC to determine whether to commence an investigation

677

738

558

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Last updated: 17/10/2013 12:00