ASIC today published its annual overview of corporate insolvencies based on statutory reports lodged by external administrators for the 2015–16 financial year.
Report 507 Insolvency statistics: External administrators’ reports (July 2015 to June 2016) is ASIC’s eighth report and provides information on the nature of corporate insolvencies, supplementing the monthly statistics that ASIC publishes on its website.
The report summarises information from 9,465 reports that ASIC received from external administrators during the 2015–2016 financial year and includes ASIC’s response to their reports of alleged misconduct.
An external administrator’s role includes investigating company failure and reporting both to creditors and ASIC.
ASIC uses external administrator reports in its work including in reporting to the market on corporate insolvency.
The Report includes information about the profile of companies placed into external administration, including:
- industry types
- employee numbers
- causes of company failure
- estimated number and value of a company’s unsecured creditor debts, and
- estimated dividends to unsecured creditors.