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ARTICLE · 19 SEPTEMBER 2023

Timely reminder to directors that your responsibilities do not end when a liquidator is appointed

Holding Redlich
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Conduct after a liquidator is appointed can significantly impact whether a disqualification period is imposed & the its length.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Howard Rapke
Howard Rapke
Jessica Tilbury
Jessica Tilbury
Rebecca Cleary
Rebecca Cleary
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The Australian Securities and Investments Commission (ASIC) has disqualified a director from managing corporations for three years due to his involvement in the failure of three companies. The regulator found that the director had failed to meet his obligations as a director, which included:

  • failing to pay Business Activity Statements, payroll taxes and Superannuation Guarantee Charge for two of the companies
  • failing to pay workers compensation premiums
  • failing to deliver all the books in his possession to the liquidator as soon as practicable after one of the entities was wound up
  • failing to maintain appropriate financial records
  • failing to prevent insolvent trading.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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