Insolvent trading is a serious offence which can have severe consequences in Australia for executive and non-executive directors including personal pecuniary penalties, compensations payable, disqualification and possible imprisonment in the case of a criminal offence.

There are a number of defences available to directors against allegations of insolvent trading. A proactive approach to risk management can also help directors manage their liability risks.

 

Liberty’s White Paper on Corporate Insolvency & Directors’ Liability Risks looks at the concept of insolvent trading, as well as the manage strategies companies should look at when they are financially distressed. 

We also look at insurance issues directors should bear in as a matter of personal liability risk management in various global jurisdictions including Asia, UK and US.

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