be revealed over time.
             § Immediately following the collapse of HIH, numerous reports appeared in the press about HIH policyholders not having their insurance contracts honoured and their claims not paid. This is both unethical and is in breach of the Trade Practices Act (1974).
            
             THE LEGAL ISSUES AND FACTS
             ASIC (Australian securities and Investment commission) has been active in investigating whether the events surrounding the collapse of HIH involved any breaches of the Corporations Law.
             In the 2001?02 Federal Budget, ASIC was provided with additional funding of $5 million over two years to assist with its investigation of HIH.
             ASIC's powers with respect to liquidation are as follows.
             A company (whether or not it is being woundup voluntarily) may be wound up under an order of the court on the application of the company, a creditor, the liquidator, ASIC, and APRA. Numerous grounds exist for the winding up of a company.
             ASIC can also investigate numerous aspects of a company's activities that it believes may be in breach of the Corporations Law. These are numerous and include:
             § Insolvent trading;
             § Insider trading;
             § Directors' share trading activities;
             § Accuracy of financial statements; and
             § The accuracy of disclosures made to the stock market
             Like APRA, ASIC has no power to ensure that all policyholders have their claims met in the event of insolvency.
            
            
             Australian Prudential Regulation Authority (APRA)
             On 15 March 2001, APRA appointed its own inspector to investigate the affairs of HIH and the Australian-authorised insurers in the HIH Group, including the financial condition of the company.
             One of APRA's major roles following the collapse of HIH appears to be explaining its role, and whether it made full use of its powers prior to the collapse. Press reports suggest that APRA did not make full use of its regulatory powers prior to the collapse of HIH.
             APRA's role is to mon...