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From the Mining Boom to the Ideas Boom - What it All MeansPeter Hillig01 Feb 2016 From the Mining Boom to the Ideas Boom – What it All Means There’s been a lot of talk about innovation in the media since Prime Minister Malcolm Turnbull launched the National Innovation and Science Agenda last December. We know the economy is transitioning away from the mining boom, but what does this new political emphasis on ideas and innovation involve? According to the PM’s innovation statement, the aim of the agenda is to create “the modern, dynamic, 21st century economy Australia needs.” Mr Turnbull noted that “Australia is falling behind when it comes to commercialising good ideas and collaborating with industry,” and put forward a number of strategies aimed at improving Australia’s position. These include:
Insolvency Law Changes – a Less Punitive Approach? The innovation strategy also involves proposed changes to insolvency laws, as recommended by the Productivity Commission. The changes suggest taking a less punitive and harsh approach to insolvency, and providing greater incentives for financially distressed companies to restructure. It is anticipated that these measures would help more businesses avoid closure and the subsequent losses to stakeholders that inevitably occur. The proposals include:
Insolvency Statistics from the Australian Securities & Investments Commission (“ASIC”) So how are businesses faring in the current climate? ASIC has released a number of key insolvency facts and figures. During 2014-15:
The September Quarter 2015 During this period there was an overall increase of 8.3% in companies entering external administration compared to the April-June quarter, and a 7% increase for NSW alone. Also in NSW, court liquidations rose by nearly 48%, receivership appointments fell by 2%, and director-initiated winding up appointments fell by 11.5%. The significant increase in Court liquidations mainly reflects the more aggressive ATO debt collection activity in recent times. ASIC Enforcement Outcomes – January to June 2015 ASIC achieved 323 enforcement outcomes in the six-month period from January to June last year. These concerned the areas of market integrity, corporate governance, financial services, and small business compliance. They included 205 criminal and 11 civil proceedings, 86 administrative remedies, 18 enforceable undertakings, and three warning notices. ASIC’s activities in this period included: • Commencement of investigations – 136. Cases included: (a) a former Queensland-based director who was convicted of managing a company while disqualified (sentenced to six (6) months jail, wholly suspended, upon entering into a three (3) year good behaviour bond); and (b) the former Chief Financial Officer (CFO) of ABC Learning Centres Limited (ABC) was sentenced to 18 months imprisonment, wholly suspended, for making available false or misleading information about the affairs of ABC that he knew to be false or misleading in material particulars. It certainly appears that businesses are generally compliant and law abiding! We also wait with interest to see the outcome of the proposed changes to insolvency laws, and the effect of the new innovation agenda on Australian business.
The level of expertise in the team at Smith Hancock continues to be acknowledged, with Martin recently registered as an official liquidator by ASIC. Achieving this registration with ASIC is no small feat, as it requires relevant qualifications as well as considerable experience in the successful winding up of insolvent companies. Martin has had more than 13 years of experience in advisory services and formal insolvency, which has provided him with exposure to a broad range of industries including retail, hospitality, property and construction, manufacturing, and telecommunications. Services Offered by Smith Hancock In addition to the traditional formal insolvency appointments such as Voluntary Administrations, Receiverships and Liquidations, we undertake cost cutting reviews, business reconstruction advice, investigating accountants reports, partnership/ shareholder disputes, forensic accounting, business valuations plus many other related services. Please telephone or email us if you have a matter in which you consider we may be able to assist. |
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