Insolvent trading is the law under the Corporations Act section 588G that says that if a company is insolvent and a director allows the company to incur a new debt, then the director can be made personally liable for the new debts incurred. The law makes directors responsible for ensuring that their company does not trade while insolvent.
This video outlines the roles and responsibilities of a Company Director while company goes insolvent.
In this video, you will discover the following key points:
Recent Articles
The definition of a Turnaround is a structured effort to restore a struggling company to financial health. While the definition sounds straightforward, the real work goes beyond the restoration of balance sheets, profit-and-loss or positive cash flows. Every business has its own unique idiosyncrasies, internal politics and stakeholder pressures —
In this episode of The Cut, the conversation dives deep into the hidden complexities of insolvency law and what every director, administrator, and shareholder needs to understand before making their next big decision. From a chickpea trading company that triggered a pivotal case to the misunderstood power of subordinated creditors,
While construction continues to dominate Australia’s insolvency landscape, new analysis by Cathro & Partners shows that hospitality and healthcare are now emerging as the next major pressure points, revealing that the nation’s business failures are deepening beyond traditional sectors. Drawing on ASIC insolvency filings and Australian Business Register (ABR) company
