Do You Know Your Director Duties?

Failing to maintain financial records and fulfill your duties can lead to financial ruin.

FREE Expert Advice 24/71300 767 525
Insolvency Solutions

As Featured In

Lowest Cost Company Liquidation

corporate insolvency

Corporate Insolvency

Is complicated. We will explain all options including Company Liquidation and Voluntary Administration.

personal insolvency

Personal Insolvency

Understand all your Options including Informal Arrangements, Formal Agreements and Bankruptcy.

demands and notices

Demands and Notices

Certain notices can’t be ignored as they may result in a Director being personally liable for Company Debts.

vital information

Vital Information

Know your Duties as a Director and how to avoid Insolvent Trading and Illegal Phoenix Transactions.

Directors Duties Must be Fulfilled

Directors have a number of legal duties that include remaining constantly aware of the financial position of the company and acting in a timely manner to address any solvency issues

The Insolvency Experts can Answer your Questions Regarding:

Director Responsibilities

Your Potential Liablities

Directors’ Legal Requirements

Understanding Director Duties and Responsibilities

Directors have a legal duty to remain constantly aware of the financial position of the company. The law not only requires a director to maintain proper books and records but to also:

  • regularly review the company’s financial situation
  • take active steps to question and confirm the financial position and solvency of the company
  • seek advice from qualified professionals if a problem is suspected
  • act in a timely manner to address any solvency issues.

The law does not consider it sufficient to understand the financial position only once a year when you sign the annual accounts.

Do You Need Help or Want to Talk?

Call 1300 767 525 to speak with us, or fill in your details below and one of our expert advisors will get back to you within 30 minutes!

FREE Expert Advice 24/71300 767 525

Presumption of Insolvency

If a director fails to maintain or retain financial records for the 7 years required by the Corporations Act, a company will be presumed to be insolvent throughout the period in which records were not kept.

This means that if a claim for Insolvent Trading is made, there will be no defence to that action and personal assets may be lost.

Insolvent Trading

Directors also have a duty to prevent a company from trading and incurring debt while it is insolvent. A company is insolvent if it is unable to pay its debts as and when they fall due for payment.

If a director incurs new debt at a time when a reasonable person in that position would understand the debt could not be repaid when it was due for payment, a claim for insolvent trading may be made and again, personal assets may be lost.

To avoid this, before any new debt or credit is sought, a director must be able to be sure there are reasonable grounds to believe the company is solvent and able to pay its debts when they become due for payment. A director can only do this by reference to the financial records, assuming they have been maintained.

Directors other Duties Under the Corporations Act

All directors must:

  • Act with care and diligence
  • Act in good faith and for a proper purpose
  • Not use their position or information improperly or to gain advantage for themselves or to harm the company
  • Act dishonestly or recklessly

Failure by a director to take all reasonable steps to ensure a company fulfills these requirements contravenes the Corporations Act. We can work with you to help you understand and comply with the regulations.

Stressed?

Need Help with Company Liquidation or Voluntary Administration?

Are you stressed? Worried about losing your house or other assets?

With over 25 years corporate and small business experience, we have helped hundreds of people just like you. Company Liquidation and insolvency is complex. An uninformed decision can have a dramatic effect on you and your personal assets.

If you need help, call the Insolvency Experts and speak with an ASIC Registered Company Liquidator

Read More

Free Consultation


Call 1300 767 525 anytime or fill in your details below and one of our expert advisers will get back to you within 30 minutes!

Lowest Cost Company Liquidation

Speak Directly to a ASIC Licenced Expert, 24/7 not a call centre salesperson!

Our Approach To Helping Your Financial Problems

The Insolvency Experts are ASIC licenced insolvency specialists who will help you FREE of charge and without obligation, 24 hours a day.

All you need to do is call to obtain answers, options and solutions to the most difficult financial situations.

The Insolvency Experts will tell you exactly what you need to know – not what you may want to hear. By doing this, we empower you, through the provision of correct information, to make the best and most informed decisions about your finances in difficult circumstances.

The Insolvency Experts who you will speak with are licenced professionals with over 30 years specialist insolvency experience. We have helped thousands of people just like you in the most dire financial situations.

We have a proven track record of honesty and trustworthiness and seek to maintain the highest ethical and moral standards while providing you with sound, professional advice.

Call – an ASIC licenced expert will assess your financial situation and provide expert tailored advice.

Answers – will be given to every question. There is no time limit on these consultations.

Options – will be canvassed and explained so you can make an informed decision that is best for you and your family.

Solutions – including both informal and formal solutions. These may include Company liquidation or Administration.

THE INSOLVENCY EXPERTS – EVERYTHING YOU NEED TO KNOW – FREE OF CHARGE AND WITHOUT OBLIGATION