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The director had a reasonable and actual expectation the company was solvent
The court does not accept that the word 'expectation' equals 'hope'.
A director cannot say I was not engaged in running the business and consequently on the information I had, I formed a reasonable and actual expectation the company was solvent.
Under the Act, a director has a positive duty of dilligence - or to ask the right questions.
In the end, if a director is to argue the company was solvent, he must convince the court that a reasonable person in the same position would have formed a view the company was solvent.
This defence rarely, if ever succeeds.
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