THE Australian Securities and Investments Commission is introducing electronic lodgement for liquidators, receivers and administrators, to improve the accuracy and consistency of data on corporate insolvency.
ASIC said the electronic lodgement must be used by companies under external administration and meant data would be received in a structured and consistent and timely manner.
“ASIC has received a very enthusiastic response from the profession to this initiative and we’ve found that insolvency professionals have quickly recognised the benefits of improved efficiency and the lower costs of coming ‘on-line’ to ASIC,” ASIC commissioner Berna Collier said.
The Insolvency Practitioners Association of Australia worked with ASIC on the development of the project.
IPAA national president Michael Dwyer said the changes were an important step forward for insolvency practitioners.
“The project will streamline reporting requirements and provide more meaningful and relevant information to creditors,” Mr Dwyer said.
Ernst & Young corporate finance and restructuring partner Brian McMaster said the changes in the lodgement process would help ASIC work more closely with receivers and administrators. He said industry had welcomed the changes because they provided for more efficient processing.
“If it achieves its objectives it could lead to reductions in fees and leave more money for the creditors,” Mr McMaster said.
RSM Bird Cameron partner Neil Cribb said the changes were going to be good from both the administrators’ and ASIC’s perspective.
He said it would provide for greater efficiency and provide ASIC with clearer and more effective statistical information.
Receivers, liquidators and administrators only need to lodge a form if the company can pay creditors less than 50 cents in the dollar, or where there is evidence of unlawful conduct by company directors.
