Assetless Administration Fund
- What is the AA Fund?
- Our guide for registered liquidators
- Grant reporting
- Lodging applications for funding
- Abandoned Company Liquidator Panel
- Reviewing Liquidator Panel
- More information
What is the AA Fund?
The Assetless Administration Fund (AA Fund) was established by the Australian Government and is administered by ASIC. It funds preliminary investigations and reports by liquidators into the failure of companies with few or no assets, where it appears to us that enforcement action may result from the investigation and report. A particular focus of the AA Fund is to curb fraudulent phoenix activity.
The AA Fund enables a liquidator to carry out a proper investigation and report, which then helps us decide whether to commence enforcement action. It also funds a liquidator to take action to recover assets when fraudulent or illegal activity is suspected.
Additionally, the AA Fund:
- funds a liquidator appointed by ASIC to an abandoned company under Pt 5.4C of the Corporations Act 2001 (Corporations Act); and
- funds a reviewing liquidator appointed by ASIC under section 90-23 of Schedule 2 to the Corporations Act to review a matter that relates to the external administration of a company.
Our guide for registered liquidators
We have issued a guide for registered liquidators appointed in a creditors’ voluntary winding up or a court-ordered winding up, who are seeking funding from the AA Fund to carry out an investigation and prepare a supplementary s533 report, or seeking funding to take action to recover assets.
Liquidators can seek funding from the AA Fund to carry out an investigation and report:
- in circumstances where they believe director bannings 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.
Liquidators can also seek funding to take action to recover assets where fraudulent or illegal phoenix activity is suspected.
The guide outlines:
- the criteria for assistance from the AA Fund;
- how to apply for funding from the AA Fund;
- our approach to funding liquidator investigations and reports
- what to include in a funded supplementary s533 report; and
- our approach to funding liquidators to take action to recover asset.
Regulatory Guide 242 ASIC's power to wind up abandoned companies (RG 242) explains how we use our power to wind up an abandoned company.
In accordance with the Commonwealth Grants Rules & Guidelines 2017, allocated grants from the AA Fund are published on the Australian Government website GrantConnect from 31 December 2017.
For details of allocated grants from the AA Fund to 31 December 2017, see our list of AA Fund grant recipients and amounts to 31 December 2017 (PDF 462KB)
Lodging applications for funding
Funding applications must be lodged online through the ASIC Regulatory Portal. To lodge through the portal you will need to use the following transaction:
- Submit request for assetless administration funding
This replaces the previous funding request forms, EX02 (director bannings) and EX03 (other matters).
If you need help registering to lodge online, contact us.
Applications for funding to take action to recover assets must be lodged online through our Regulatory Portal.
The Abandoned Company Liquidator Panel (Panel) comprises 43 suitably qualified and experienced registered liquidators. After ASIC orders the winding up of a company under Part 5.4C of the Corporations Act 2001, the Panel members are required to wind up the company’s affairs, distribute its property and assist employees access unpaid employee entitlements under the Fair Entitlements Guarantee Act.
The appointment of liquidators also facilitates a full and proper investigation into the reasons why the company failed and allows recovery of any voidable or unreasonable director-related transactions.
The funding for the Panel is from the AAF administered by ASIC.
The Reviewing Liquidator Panel comprises 15 suitably qualified and experienced registered liquidators. When ASIC appoints a member as a reviewing liquidator under section 90-23 of the Schedule 2 of the Corporations Act 2001, ASIC expects the member to inquired, investigate and report on suspected illegal phoenix activity including the conduct of the appointed external administrator where he/she appears to facilitate or has facilitated the activity through a lack of independence, or by not conducting adequate investigations and reporting both to creditors and ASIC. These services aim to promote market confidence in the corporate insolvency regime and support the Government’s reforms aimed at combatting illegal phoenix activity.