ASIC has used its wind up powers to appoint liquidators to 12 abandoned companies from a variety of industries to assist employees in gaining access to the Fair Entitlements Guarantee (FEG) scheme.
In total, there are about 42 employees from these 12 abandoned companies that are owed $335,000 in entitlements.
One of the companies on that list is Gazal Telecom Australia. Liquidator, Hugh Armenis of Bentleys has been appointed as a liquidator to the NSW-based company.
According to ASIC, Gazal Telecom PTY LTD became a registered company in December 2007 and Gazal Telecom Australia was registered in January 2010.
The CEO of the two companies, Nahi Nasri Gazal, was convicted in 2013 in the Downing Centre Local Court after managing a corporation while disqualified. ASIC previously disqualified Gazal from managing a corporation in January 2007 following an investigation into his involvement in six failed companies, which were wound up after owing creditors more than $13 million.
In February 2014, Gazal Telecom Australia, went into receivership not long after getting into trouble from the ACMA after contravening the TCP code by transferring customers without their authorisation.
FEG is a legislative safety net scheme funded by the Australian Government designed to assist employees owed unpaid employee entitlements because of their employer company’s liquidation or the company directors’ bankruptcy.
However, some employees owed entitlements cannot access FEG because the companies’ directors are either unable to discharge their duties or abandoned their insolvent companies without putting them into liquidation.
ASIC’s appointment of liquidators facilitates access to FEG for these employees. During the course of 2014/2015 ASIC has appointed liquidators to 31 companies that have owed a total of 98 employees more than $995,000 in entitlements.
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