ARTICLE · 05 JUNE 2024

Navigating lockdown Director Penalty Notices: key considerations

Worrells

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Explores the relevant considerations directors should make when facing a lockdown DPN.

AustraliaTax

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Are you paying down a DPN through external administration?

Many of our readers are likely familiar with the concept of Director Penalty Notices (DPN), including the differences between a standard (or a non-lockdown) DPN and a lockdown DPN, and the necessity for a company to appoint a liquidator, administrator or restructuring practitioner when unable to pay the penalties of a non-lockdown DPN. If you wish to learn more about DPNs, click here to head to our DPN category.

Directors who receive lockdown DPNs often find themselves uncertain about their options beyond full debt payment. This article explores the relevant considerations directors should make when facing a lockdown DPN.

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