It is not uncommon for a director to be exposed to a number of personal liabilities when a company is wound up. These often relate to personal guarantees given to suppliers and lessors, exposure to the Director Penalty regime administered by the Australian Taxation Office and liquidation-centric issues such as insolvent trading offences under the Corporations Act 2001.
The Australian Securities & Investments Commission, the Australian Financial Security Authority and our peak professional body, the Australian Restructuring Insolvency & Turnaround Association have teamed up to produce a very helpful guide for directors to highlight the connections between a corporate liquidation and personal bankruptcy.
If you have a corporate client that is experiencing financial distress, I would strong suggest sharing this publication with the directors, so they can get a clear understanding of the interplay between the corporate and personal dimensions.
You can access the publication on our website here.
About the author
Greg Quin is a Partner at HLB Mann Judd Insolvency WA and has been with the team for 13 years. Greg oversees the daily operations of the many insolvency appointments managed by the HLB Insolvency team and looks after the operations of the practice.
If you have any queries about insolvency matters, please feel free to contact Greg on 08 9215 7900, 0402 943 091 or via email to firstname.lastname@example.org.