Our Latest Blogs

The short answer: No! And even if you resigned in the period leading up to the liquidation, you will still be held responsible for your conduct whilst you were the director. Who Is A Director? While this may seem like a simple question, the answer may surprise you. A director is not just a person […]

Being the director of a company experiencing financial difficulties can be scary and unknown. All too often, company directors continue to amass company debt as they view entering liquidation as a personal failure and are terrified of being personally liable for any debts incurred by the company. While in most cases the director is not […]

When all else fails and a business finds themselves on the brink of insolvency, the director of a company may have no choice but to seek professional advice on completing a liquidation. Insolvency simply means that a business can no longer pay its company debts as and when due to payment – a feeling all […]

Like PAYG, non-payment of GST will attract personal liability for Directors under the Director Penalty Regime in 2 ways: Unavoidable liability Fail to lodge Business Activity Statements (BAS) and Income Activity Statements (IAS) within 3 months of the due date for lodgement. Lock down Director Penalty Notice will attach Personal Liability to a Director immediately […]

Both the Corporations Act and the Fair Work Act provide for accessory liability. Section 79 of the Corporations Act states: Section 79 Involvement in contraventions A person is involved in a contravention if, and only if, the person: has aided, abetted, counselled or procured the contravention; or has induced, whether by threats or promises or otherwise, the contravention; or has been in […]

Company directors will be compelled to register for a lifetime ID number or face penalties including a year in prison under a Commonwealth plan to fight phoenixing activity. Support for company ‘director identification numbers’, known as DINs, has long been held by both sides of politics and the small business community. However, it’s only this […]

The Government will soon introduce a unique Director Identification Number (“DIN”) to combat illegal phoenix activity and to curb the activities of pre-insolvency advisors who will also be targeted and potentially held liable for their advice. As part of the reforms, the Government is consulting on widening the scope of directors personal liability to include […]

For the last few months, we have been updating you about raids undertaken by the ASIC and the Federal Police in relation to an alleged Phoenix Company promoter. Recently, the Court ordered that the assets of the phoenixer be frozen and a Provisional Liquidator appointed to companies under his effective control that appears to have […]

At law, a company is a separate and distinct legal entity from its owners and controllers. As such, the company is responsible for the payment of its debts. A director has no personal liability for company debt however, the protection of a company structure is often signed away to suppliers who insist on a personal guarantee […]