Insolvency for directors

For directors

Is my company in financial difficulty?

Signs that may indicate your company is in financial difficulty include ongoing losses, poor cashflow, unpaid creditors outside usual trading terms and problems obtaining finance. If you receive a s222AOE penalty notice from the Commissioner of Taxation for your company’s unpaid tax, you should immediately seek professional advice. Failure to take appropriate steps within 14 days may result in the Commissioner taking recovery action against you personally for an amount equivalent to the unpaid tax. Read more how to tell whether your company is in financial difficulty

What do I do if my company is in financial difficulty?

If you suspect your company is in financial difficulty, get proper accounting and legal advice as early as possible, as this increases the likelihood of the company surviving. Read more what to do if your company is in financial difficulty

What if my company is insolvent?

If your company is insolvent, do not allow it to incur further debt. Unless it is possible to promptly restructure, refinance or obtain equity funding to recapitalise the company, generally, your options are to appoint a voluntary administrator or a liquidator. The three most common insolvency procedures are voluntary administration, liquidation and receivership. Read more about what happens if your company is insolvent

What are my duties as a director?

If your company is insolvent, or there is a real risk of insolvency, your duties as a director are expanded to include the interests of creditors (including employees and other stakeholders). As well as general directors’ duties, you also have a duty to prevent your company trading if it is insolvent. Read more about directors' duties

What are the consequences of insolvent trading?

Insolvent trading can have serious consequences for directors. There are various penalties associated with insolvent trading, including civil penalties, compensation proceedings and criminal charges. Read more about the consequences of insolvent trading

How does an external administration affect me as a director?

There are a number of consequences for directors of a company that goes into external administration. These vary depending on the type of external administration. Read more how an external administration affects you as a director

What is my role in assisting an external administrator?

As a company officer, you must assist any external administrator (e.g. liquidator, receiver, administrator) who has been appointed to your company. You must provide reports as to affairs (commonly known as RATAs), records, information and other assistance. Read more role in assisting an external administrator

Bankruptcy and personal insolvency agreements

What happens to you as a director, alternate director or secretary if you are bankrupt or subject to a Part X agreement? Read more about bankrupcty and personal insolvency agreements

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What's new

ASIC reports on corporate insolvencies 2013 -2014

Read our annual overview of corporate insolvencies based on statutory reports lodged by external administrators for the 2013–14 financial year. 14-254MR. 29 Sep 2014

More releases on insolvency

Latest liquidator registration applications

Latest insolvency statistics

Latest insolvency notices

View insolvency and deregistration notices on the published notices website.

Last updated: 17/10/2014 07:59