Almost 5000 companies were reported to the corporate regulator for insolvent trading in 2017 and high cash burn or inadequate cash flow was the main reason for corporate death.
Regulator ASICs 2016-2017 insolvency report found administrators reported 4878 cases of insolvent trading.
The next two major forms of misconduct were not undertaking director duties carefully and not keeping good financial records.
Companies that went insolvent did so because of money problems, poor strategic management and bad financial control.
While ASIC says the number of external administrator appointments was down 18.4 per cent in fiscal 2017, in the first half of the new financial year there have been a spate of colourful co…
Read the full article at: https://www.businessinsider.com.au/business-failure-asic-2017-12
