ASIC on Insolvent Trading

Transcript

Hi & welcome to the Insolvency Experts — I’m Steven Kugel

The ASIC has recently put out practical notes and guidance rules for all directors in relation to Insolvent Trading.

ASIC considers directors need to take the following into account in performing their duties to prevent insolvent trading.

A director:

must keep him or herself informed about the financial affairs of the company and regularly assess the company’s solvency. This means preparing financial information and reviewing same regularly;
immediately on identifying concerns about the company’s viability, should take positive steps to confirm the company’s financial position and realistically assess the options available to deal with the company’s financial difficulties;
should obtain appropriate advice from a suitably qualified person; and
should consider and act appropriately on the advice received in a timely manner based on the advice received