THE web of company entities that has enabled Beechwood’s Larry King to push himself to the top of the list of creditors waiting on money from his collapsed firm demonstrates there is something fundamentally flawed in the way business is allowed to operate in this country.

Essentially, Mr King has through very complex loan transactions and company and trust structures built a firewall between himself and the responsibility he should bear for the collapse of Beechwood, which has left hundreds of South Coast residents out of pocket, in some cases to the tune of hundreds of thousands of dollars.

It seems grossly unfair that wily accountants and lawyers can engineer schemes that on the one hand protect those who should take the blame for the collapse and on the other almost guarantee that the smaller creditors, including those waiting for their houses to be built, will get next to nothing.

Mr King stands to walk away with millions while the victims of his questionable business activities are to be left out in the cold.

While ever there have been rules governing how business should be conducted there has been an army of lawyers and accountants who seek to find ways around them on behalf of their clients.

So it is imperative that the Australian Securities and Investments Commission looks closely at the Beechwood collapse and closes the loopholes that it has exposed.