Directors are required to prevent insolvent trading under section 588G of the Corporations Act. But what does 'insolvent trading' really mean? How far does a director’s duty go, and can a director avoid personal liability?

This session provides a deep dive into insolvent trading and examines the following:

• Determining the date of insolvency and how this may be proved or justified;

• The duties of directors;

• Potential defences available to directors pursuant to section 588H of the Corporations Act and the approach of the court in relation to these;

• Safe harbour defence and the criteria to obtain it;

• The consequences of insolvent trading;

• The role of the liquidator in recovering against the director/s for insolvent trading; and

• Recent court decisions involving insolvent trading.