Figures just released by the Australian Securities and Investments Commission (ASIC) show that 644 grants totalling over $8.6 million have been paid to liquidators out of the Federal Government’s Assetless Administration Fund (AA Fund) between 19/12/2007 (the first payment) and 21/2/2011.
Creation of the AAFund was announced in October 2005 and officially launched on 22 February 2006.
Liquidators of companies with few or no assets may apply to ASIC for grants to finance preliminary investigations by them into the failure. Where ASIC is satisfied that enforcement action may result from a liquidator’s investigation and report, it may approve a grant.
Liquidators can seek funding 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 2001.
The largest single payment to date is $442,000 in 2009, to a liquidator who received $739,000 in total in that year . Most payments have been $8,250.
Click here to see the latest list of grant recipients. (… to 9 May 2011)