At Khoury Scott and Associates, we focus on delivering high quality legal advice, assistance and representation throughout the entire lifecycle of a business – this includes restructuring, dealing with financial difficulties and, if otherwise unavoidable, insolvency.
When a company is unable to pay its debts as and when they fall due, it may be deemed insolvent. The moment this happens, directors ought to be aware of their obligations under the Corporations Act 2001 (Cth), most importantly, the director’s positive duty to prevent the company from trading whilst insolvent.
If a director fails to act swiftly and effectively to return the company to a solvent state, then the director may be held personally liable for both civil and criminal penalties for breaches of their director duties.
Our team advise directors through these tough times. With experience handling largescale insolvency matters our lawyers are able to present options to directors which can assist in the efficient handling of prospective, or real, insolvency issues within your business. As always, the best advice is to get advice and sooner rather than later as the options available will diminish with the passage of time.