Reasons behind the collapse of big corporate organizations in Australia

A discussion on the collapse of big
corporate organization in the context of
Australia

Table of Contents
Introduction:....................................................................................................................................3
Discussing the major reasons (including ethics and governance) behind the corporate failure in
the context of the chosen organization............................................................................................3
Role of organizational liability as a reason behind corporate failure..............................................7
Conclusion:......................................................................................................................................7
Reference:........................................................................................................................................9

Introduction:
The liquidation or winding up occurs in an organization when the organization declares that it is
no longer financially capable to repay the financial debt made to the creditors of the company
and the company declares itself as bankrupt. Then the creditors of the company decides to
liquidate the company .A liquidation of the corporate organization takes place when the
organization has become insolvent and when there is no other option for the creditors of the
organization to maximize their return. However the share holders also have to agree with the
decision of the creditors that the liquidation of the company y should be done for the best interest
of the creditors, investors and share holders of the company. Once the entire major stake holders
of the company [] agree then a liquidator is appointed for the liquidation of the company. The
appointed liquidator of the company is authorised to cease the business operations of the
organization and also to sell the assets of the organization and to collect and distribute the fund
among the creditors share holders and investors of the company as per predefined priorities.
In recent years several incidents of big corporate failure or company windup has taken place in
Australia. Among the different organization the winding up cases of ABC Learning, HIH
Insurance and OneTel phone are worth of study as these organizations have made sudden
collapse due to acute financial crisis(Atsan, 2016).
The ABC learning was a well known brand of the Australian Child care industry. HIH Insurance
group was another big brand of the Australian insurance industry. On the other hand OneTel,
was the fourth largest telecommunications company in Australia and was one of the fastest
growing companies that among the ,listed companies of ASX.
Discussing the major reasons (including ethics and governance) behind
the corporate failure in the context of the chosen organization