Presentation to

LARMALocal Authorities Revenue Management

Association (Qld) Inc

Peter Witham – Property Law Group10 October 2013

Key messages

1. What “deregistered company” means.

• company ceases to exist

2. Property of deregistered companies.

• rights in property belong to ASIC

• still subject to mortgagee rights, but no obligation to pay mortgage or rates

3. Resolution.

• reinstatement; or

• transfer/sale of property to new owner

2

3

ASIC – Brief Background

Australian Securities & Investments Commission.

• Established in 1991 to nationally unify previously

state-based corporate regulation in Australia.

• Australia’s corporate, markets and financial services regulator.

• Have approx 1,800 staff around Australia.

• Strategic priorities:

– Confident and informed investors and financial consumers

– Fair and efficient financial markets

– Efficient registration and licensing

4

Deregistered company

• Company is removed from the register of companies.

• Company ceases to exist as a legal entity.

• Former officeholders (e.g. directors) cease to have authority to act on behalf of the company.

• Legal proceedings – cannot be taken against it.

• Property of the company – rights in the property

now belong to ASIC or the Commonwealth

(trust property).

Searching for deregistration

5

6

Property of deregistered companies

• Property remains subject to securities and liabilities imposed on the property – like mortgages and rates.

However, ASIC not required to pay rates unless it sells the property.

ASIC does not regularly sell property.

• Mortgagee retains rights, including possession of the property and power of sale.

7

Resolution

• Win/Win:– rates paid– property in the name of a person or registered

company

• Reinstatement:– Property returns to the company, which can be

pursued like any other party for outstanding rates (e.g. legal proceedings)

• Sale/transfer of property:– Rates paid; property transferred to a new

owner (legal entity)

Key messages

1. What “deregistered company” means.

• company ceases to exist

2. Property of deregistered companies.

• rights in property belong to ASIC

• still subject to mortgagee rights, but no obligation to pay mortgage or rates

3. Resolution.

• reinstatement; or

• transfer/sale of property to new owner

8

MoneySmart Website

9

www.moneysmart.gov.au

MoneySmart Website (cont)

10

MoneySmart Website (cont)

11

MoneySmart Website (cont)

12

MoneySmart Website (cont)

13

Discussion

• Any questions?

Peter Witham

Property Law Group

ASIC

GPO Box 9827

Brisbane Qld 4001

Ph: 07 3867 4764

Email: peter.witham@asic.gov.au

14