Penalties for Insolvent Trading
So what if your company did trade while insolvent? What can you be personally liable for?
The liability for debts after a company becomes insolvent lies with those who were directors at the time of incurring the debt. ASIC can bring civil penalties against directors. This can include:
- disqualification from managing a company;
- fines of up to $200,000;
- an order to pay compensation to the company equivalent to the loss suffered by creditors.
The Department of Public Prosecutions can bring criminal proceedings for insolvent trading if fraud or dishonesty is involved.
If you are facing an insolvent trading action and you want to speak to an expert about possible defences why not call one of our experts for CONFIDENTIAL FREE ADVICE.
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