GO4195: Assetless Administration Fund - Asset Recovery Grant

The Asset Recovery Grant Guideline is one of three revised guidelines developed by ASIC to replace ASIC Regulatory Guide 109.

The Asset Recovery grant opportunity provides funding to a liquidator of an assetless company to take action to recover certain assets, or for compensation for loss, where misconduct in relation to the company has occurred which caused assets of the company to dissipate.

The Commonwealth Grant Rules and Principles 2024 (CGRPs) requires grant opportunity guidelines to be developed for all new grant opportunities, and revised guidelines to be developed where significant changes have been made to a grant opportunity.

The Guidelines are developed in accordance with the CGRPs within the Commonwealth Grants Policy Framework.

Please read the Guidelines carefully, as it contains numerous changes including: - Sections and headings in accordance with the Whole-of-Government template - Simplified definition for 'assetless' administration for determining a liquidator's eligibility to apply for grant in section 4.5 - Clearer assessment criteria in section 6 - Explicit guidance regarding funding for security for costs orders to support asset recovery.

Any liquidator appointed as a liquidator to a company in liquidation in (a) a court-ordered winding up, (b) a creditors' voluntary winding up, or (c) an ASIC-ordered winding up (under s489EA) may apply.

The company must be an assetless administration with net realisable assets below the threshold specified in Item 1 of the Schedule ($10,000).

The liquidator must have lodged an initial statutory report under s533(1) via the ASIC Regulatory Portal, must have formed a reasonable belief that misconduct occurred which caused dissipation of assets, and there must be sufficient evidence available or likely to become available to establish reasonable prospects of successful recovery and that defendants have assets likely available to satisfy a judgment or costs order.

Net realisable assets and exclusions are defined in the guidelines (see paragraphs 4.5–4.6).