INSOLVENT TRADING
Under the Corporations Act 2001 ("the Act") a company is insolvent if it is unable to pay its debts as and when they fall due. Directors have a duty under section 588G of the Act to prevent insolvent trading by their company. Failure to prevent insolvent trading can have serious consequences for directors.
If you suspect your company may be insolvent you must act straight away. Call us for confidential free advice. We will let you know whether or not your company is insolvent, the consequences of insolvency and the alternative courses of action available to the company in the event of insolvency.