Actions Against Directors - Insolvent Trading

Generally, if a company incurs a debt, the company itself is liable. However, s 588G of the Corporations Act 2001 (Cth) can make a director personally liable if the elements of insolvent trading is made out.

Such directors can be liable for: -

A civil penalty;
A criminal offence; or
A civil liability (usually on an application by the liquidator).

Insolvent Trading - Disputes

Disputes can arise in a number of ways. We generally help with civil liability only in disputes about: -

whether the person was a director at the time;
whether the debt was incurred;
whether the company was insolvent;
whether there were reasonable grounds to suspect the company was insolvent.

Let Us Help You

determine the elements of civil liability for insolvent trading by directors;
help you understand the defences available to directors;
see if relief is available (otherwise).

* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.