Go offline with the Player FM app!
Thousands of defunct businesses ‘simply handing back the keys’
Manage episode 357574145 series 2394975
About 50,000 business owners a year are simply handing back the keys and walking away, says the chief executive of insolvency body ARITA, due to a “dysfunctional” wind-up system. John Winter of the Australian Restructuring, Insolvency and Turnaround Association said the issue was starting to appear on government radar because the numbers involved were four to five times higher than formal insolvencies.
“We think that there is a wholesale failure within the Australian insolvency regime,” Mr Winter said, speaking on the latest Accountants Daily podcast.
“Over many years it's become far too complex.”
“Typically, a business which is solvent and is being closed down should go through a members voluntary liquidation. If it’s insolvent, it's got to go through insolvency processes, but 40,000 to 50,000 businesses a year are not doing any of that.”
254 episodes
Manage episode 357574145 series 2394975
About 50,000 business owners a year are simply handing back the keys and walking away, says the chief executive of insolvency body ARITA, due to a “dysfunctional” wind-up system. John Winter of the Australian Restructuring, Insolvency and Turnaround Association said the issue was starting to appear on government radar because the numbers involved were four to five times higher than formal insolvencies.
“We think that there is a wholesale failure within the Australian insolvency regime,” Mr Winter said, speaking on the latest Accountants Daily podcast.
“Over many years it's become far too complex.”
“Typically, a business which is solvent and is being closed down should go through a members voluntary liquidation. If it’s insolvent, it's got to go through insolvency processes, but 40,000 to 50,000 businesses a year are not doing any of that.”
254 episodes
All episodes
×Welcome to Player FM!
Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.