Inadequate cash flow and poor strategic management of business were the biggest causes of failed businesses in the last financial year, with over 5,000 reports alleging insolvent trading.
Small to medium-sized corporate insolvencies dominate external administrators reports, with 84 per cent of failed companies having estimated assets of $100,000 or less, according to ASICs report of corporate insolvencies based on statutory reports lodged by external administrators for the 2017-18 financial year.
Of the 7,613 reports lodged, external administrators reported alleged misconduct for 6,577 reports.
The top three alleged possible misconduct came from insolvent trading (69 per cent); care and diligence directors and officers duties (54 per cent)…
Read the full article at: https://www.mybusiness.com.au/management/5180-asic-reveals-reasons-behind-business-insolvencies