The Importance of Recordkeeping
Maintain records or be presumed Insolvent
This will expose your personal assets to loss
The Liquidator, creditor or the ASIC – or whoever alleges a breach of the Corporations Act – must usually prove the facts for insolvent trading.
They will examine a company’s financial records to correctly record and explain the transactions of the company and its financial position.
If you fail to maintain adequate books and records, and the company is later placed into liquidation, it may be presumed your company was insolvent for the period of time that adequate records were not maintained.