It is imperative under Australian Legislation that a director of a company that is insolvent or likely to become insolvent in the foreseeable future acts responsibly. Australian Corporate Legislation specifically states that a director must not trade a company whilst insolvent. There is a fiduciary duty upon a director to take action in these circumstances. This may involve appointing an administrator or liquidator.
It is imperative a director seeks immediate advice on the Company’s solvency status and options available.
Timely advice usually results in more options being available to the company and mitigates further losses to key stakeholders. Shaw Gidley can help find a solution.
If you wish to contact Shaw Gidley to make an enquiry regarding insolvency for companies, please use the enquiry form on the right and one of our Corporate Insolvency Services Team will respond to you in the near future.
With Offices in Newcastle, Central Coast and Port Macquarie, Shaw Gidley is your bankruptcy, liquidation and insolvency specialists.