Australia: ISP's days are over

Internet service provider ISP Limited has appointed a voluntary administrator after the securities watchdog raised questions about its solvency.

SYDNEY (ZDNet Australia)--Internet service provider ISP Limited has appointed a voluntary administrator after the securities watchdog raised questions about its solvency.

The Australian Securities and Investments Commission (ASIC) took action in the Supreme Court of Western Australia to force the company to lodge its half yearly accounts for the six months ending 31 December 2000.

ISP also failed to lodge its quarterly cash flow statement with Australian Stock Exchange.

"Reporting on the financial position of the company is a core disclosure obligation for companies and a critical source of information for shareholders and creditors," ASIC's acting regional commissioner WA, Michael Gething, said.

"Additionally, directors have obligations in respect of the management of a company's financial position, particularly to prevent insolvent trading," he added.

Public companies are required by law to lodge a half-yearly report - which contains a financial report, directors' report and auditors' report - with ASIC within 75 days of the end of the half year.

ASIC said it is now waiting to be advised by the administrator of the company.

"Administration provides an opportunity for companies and directors to obtain an independent assessment of the future prospects for the company if there are concerns about its financial future," Gething said.

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