Trade Whilst Insolvent and Risk Losing Your Personal Assets
The Corporations Act requires directors to prevent their company from incurring debts which the company is not able to pay.
Directors must acknowledge their responsibility and take positive action when there is doubt as to the solvency of the company.
If a director fails to prevent the company from incurring debts at a time when the company is insolvent, the director can become personally liable for the debts incurred.
This means your personal assets may be at risk.
* What is an insolvent company?
* Duty to not trade while insolvent.
* Duty to keep books and records - presumption of insolvency
* What to do if you suspect insolvency
* Directors liability for insolvent trading
* What is required to demonstrate insolvent trading
* Who can commence an action for insolvent trading against the director(s)
* Defences to insolvent trading
* Avoiding insolvent trading claims
