by Alan Thornhill
Did you lose your accumulated holiday pay – or other entitlements – when your boss went broke?
A bill just introduced into Federal Parliament might help.
David Bradbury, the Parliamentary Secretary to the Treasury explains.
He says his bill will help employees of abandoned companies get their entitlements.
It would give the corporate watchdog, the Securities and Investments Commission power to order the winding up of abandoned companies.
Under present law, workers can only get their entitlements if a company has been placed into liquidation.
“These amendments will give ASIC the power to place a company into liquidation in a range of circumstances, ” Mr Bradbury said.
That might happen, for example, if ASIC has reason to believe that the company is no longer carrying on business or where a company has been deregistered but not liquidated.
“This means that the corporate watchdog can step in and wind up a company so that workers are not dudded out of their entitlements where directors have walked out on their business,” Mr Bradbury said.
He said his Bill also implements an important part of the Government’s insolvency reform package.
It would do this by facilitating the establishment of a single online insolvency notices website.
“As part of the Gillard Government’s insolvency reform announced on 14 December 2011, insolvency notices will be required to be posted to a new website to be established as part of the ASIC website from 1 July 2012,” Mr Bradbury said.
“The establishment of the ASIC insolvency website will replace 53,000 newspaper advertisements over the next four years, making it easier for creditors to access information.
“While the regulations will set a fee for lodging notices on the ASIC website, overall this measure is expected to maximise returns to creditors and cut costs to industry by around $15 million over the next four years,” Mr Bradbury said.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Wednesday May 22
The Dow Jones Index rose 52.07 points to 15,387.30
At least 24 die in Oklahoma tornado
Unions are seeking a rise of $30 a week in the National Wage Case, which opens today
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