According to ASIC, a company is considered insolvent when it cannot pay its debts on time.
Alan Gray believes the email Ms Poelina received was a "black and white" case of trading while insolvent. "Personally, at the time, I probably wouldn't have sent it … but we were, not to my opinion, and legal opinion, insolvent at that point in time."The new federal government has promised an inquiry into the company's collapse, which came after decades of questions around its sales practices to Aboriginal people.Alan Gray is calling on the new Labor government to act as soon as possible.
ASIC has confirmed it is investigating current and former directors, and Ron Pattenden is one of the key people of interest. Liquidator David Stimpson also said he was investigating the relationship between Youpla and Crown Insurance — a company founded in Vanuatu by Mr Pattenden in 2002 to provide re-insurance to ACBF .
"I am continuing my investigations regarding the potential offences and will report these offences in a confidential report to ASIC," he said in the report. Mr Wheeldon also blamed the Australian Financial Complaints Authority , who ruled in favour of 178 customer complaints against Youpla, costing the company millions of dollars in pay-outs in its final years.