The Australian Securities and Investments Commission has revealed a significant increase in director disqualification actions, particularly targeting companies with repeated compliance failures.
Why the increase?
ASIC attributes the rise to poor financial management, failure to prevent insolvent trading, phoenix activity and repeated failures to comply with statutory obligations.
- Poor financial management
- Failure to prevent insolvent trading
- Repeated compliance failures
- Non-compliance with statutory obligations
What this means for businesses
Businesses dealing with suppliers, customers and contractors should pay attention to early risk indicators and monitor company changes before issues escalate.