Directors liability for insolvent trading
If a company falls over and liquidators are appointed, their role is to recover assets for the benefit of creditors.
Liquidators have power under the Corporations Act to pursue directors for allowing their company to trade and incur debt while insolvent.
Not only can liquidators take action that may see a directors personal assets becoming available to meet the debts owed to creditors of a company but they may also recommend criminal sanctions against the director(s).
The penalties for insolvent trading fall under the following headings;
Liquidation Experts, Liquidation and Bankruptcy Specialist, Liquidators Registered with ASIC, Bankruptcy Trustees Registered with ITSA, Insolvency and Liquidation Advice, All forms of corporate and personal insolvency, Liquidation throughout Australia, Part IX Debt Agreements, Part X Personal Insolvency Agreement, Bankruptcy Expert.