Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I thank Senator Wong for the question. I will certainly share with the Senate information that I can provide, given that obviously the recent events are issues that are operational in terms of what ASIC might be doing. I can confirm that ASIC is the appropriate independent statutory authority responsible for the enforcement of the Corporations Act and for matters that relate to it. It is working closely with the administration—I certainly can confirm that. It would not be appropriate to comment further on the exact substance or status of those inquiries at this particular time, but there is some information that I can give to the Senate in response to Senator Wong’s question which I think will be helpful.

Speaking generally, the law does provide a framework for the investigation of allegations about improper transactions and unfair loans or transactions with related parties occurring before a company’s entry into external administration. Directors must provide the administrator with information about the company’s affairs and financial circumstances, including transactions entered into before the company’s collapse. The administrator must then make a report to creditors about any recoverable transactions. He may also report about possible insolvent trading. The law also requires the administrator to lodge with ASIC as soon as practicable a report about any offences or any breach of duty or trust in relation to the company. A liquidator is able to recover the proceeds of improper transactions entered into before a company’s collapse, for the benefit of creditors, or indeed trace those payments.