Insolvent Trading

Directors should stop a company from incurring a debt that it is not able to pay. If directors recklessly incur debts they may have to compensate those creditors for the losses they have incurred due to the breach of duty of the directors.

If the liquidator decides not to take action against the directors, individual or groups of creditors may commence their own actions. Creditors may apply to the liquidator for consent six months after the liquidation.

Please call Peter Lee or Graham Knight on +61 7 3329 3999 or email if you have any enquiries.

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