Kleenmaid directors may face charges over collapse

"[The Australian Securities and Investments Commission] are investigating the situation and if there's any evidence that this company was trading insolvently than the directors should feel the full force of the law and I'll be encouraging ASIC to bring charges against those directors." Mr Lawlor says there has been 11 complaints against the company in the past 18 months and nine were resolved.

http://www.abc.net.au
April 24, 2009

Kleenmaid directors may face charges over collapse

There have been 11 complaints against the company in the past 18 months.

The Queensland Government says the directors of Kleenmaid should be charged if the company is found to have been trading while insolvent.

The Sunshine Coast appliance company went into voluntary administration earlier this month owing creditors $73 million, and leaving 6,000 customers out of pocket.

Minister for Fair Trading Peter Lawlor says complaints made to his department about the company did not indicate it was in serious trouble.

"It's a sad situation," he said.

"[The Australian Securities and Investments Commission] are investigating the situation and if there's any evidence that this company was trading insolvently than the directors should feel the full force of the law and I'll be encouraging ASIC to bring charges against those directors."

Mr Lawlor says there has been 11 complaints against the company in the past 18 months and nine were resolved.

"Nevertheless, I think that it's important that there's some kind of central register," he said.

"I'll be suggesting that to my interstate colleagues, so if there's evidence of a company in trouble in other states then that can be passed around."

http://www.abc.net.au/news/stories/2009/04/24/2551595.htm


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