ASIC has released a consultation paper outlining how it intends to implement its new power to wind up abandoned companies under the Corporations Act 2001 to facilitate access by employees to the General Employee Entitlements Redundancy Scheme (GEERS).

Consultation Paper 180 ASIC’s power to wind up abandoned companies (CP 180) outlines how ASIC intends to exercise this new power, and how it will prioritise matters for winding up

ASIC is proposing to apply a public interest test when deciding whether to wind up a company. This public interest test will consider factors like the cost of winding up, the amount of outstanding employee entitlements and how many employees are affected.

ASIC intends to commence using this new power to wind up abandoned companies in the final quarter of 2012.