Request for assetless administration funding
This transaction allows registered liquidators to seek funding from the Assetless Administration Fund to carry out an investigation and report:
- in circumstances where they believe director banning may be appropriate, or
- for other matters, such as where the liquidator believes there is or may be evidence of possible offences or other misconduct in relation to the Corporations Act 2001.
Liquidators can also seek funding to take action to recover assets, particularly where they suspect fraudulent or illegal phoenix activity.
The following user guide for ‘Matters other than Director Banning’ is the first of three guides which will be published to explain how to submit an AAF application through ASIC’s regulatory portal:
The sections in the transaction will change depending on the type of funding you are applying for and the questions you respond to. There are screen shots below that show some specifics of the transaction including:
- Director banning or misconduct
- Books and records
- Estimated net realisable assets of the company
- Registered liquidator fees and disbursements
- Identifying alleged breaches
- Funding to take action to recover assets
- Other relevant questions
The transaction seeks information in relation to the funding request, including but not limited to books and records, relevant assets, creditor profile and misconduct details.
When you answer a question, you may be requested to provide information specific to your response. This conditional logic ensures that appropriate questions are tailored to your responses.
The ‘Books and records’ section provides a prescriptive list of records to choose from. Questions in this section include:
- Have you obtained all the company books and records?
- What types of books do you have in your possession?
- Given the size and operations of the company, what books would you expect the company to have maintained but have not been provided to you?
- Do the circumstances of the company justify the making of an application under section 530C for a warrant to search for and seize company’s property or books?
- Have there been any receipts and payments in the liquidation to date?
- Has the liquidator incurred remuneration and disbursements to date?
* Please note that this question is asking for the total amount of time costs and expenses accrued/accumulated by the Liquidator and their staff for the work carried out up to the date the form is submitted (whether these costs and expenses are billed or unbilled/drawn or unpaid, and whether approved or not by the creditors or by the court).
- Specify remuneration and disbursements (if applicable) that have been approved by creditors or by the court but not yet paid.
When identifying alleged breaches, it is suggested you first select the alleged breach you want to report on and then select the parties relevant to that breach. You can report multiple breaches as part of the transaction.
You are only required to upload one schedule of their rates and one estimate of their fees and disbursements to prepare the report.
The sections in the transaction will change accordingly if funding to take action to recover assets is selected.
You will be asked to provide a summary of the action to be taken and should also attach copies of proposed or actual proceedings if already filed or other appropriate documents to allow ASIC to properly understand the action to recover assets.
There are other relevant questions in the transaction relating to details of the identity of the subject/s who the recovery action is being taken against. Some of the questions are new compared to what has been asked for by ASIC in the past.
Registered liquidators will be asked to provide details about:
- The type and role of the subject.
- The purpose of the funding.
- When the statute of limitations expires in relation to the future asset recovery action.
- The estimated time period to complete the work.