Our experienced commercial litigation team provide specialist corporate insolvency advice in Brisbane and the Gold Coast.
Advice to Directors
When a company becomes insolvent and cannot pay its debts as and when they fall due, a director of a company in Australia has substantial obligations pursuant to the Corporations Act 2001 (Cth). In the event that the director does not act in accordance with their duties and obligations pursuant to the Corporations Act, the director may be found to have breached his or her duties and that may be an offence depending on the nature of the alleged breach. This breach can lead to both civil (and in some circumstances) criminal penalties.
The director can also become personally liable for some of the company’s debts which may be pursued by a future liquidator appointed to the Company. Our firm can advise directors in respect of the options that are available to the directors having regard to the circumstances of each case. There are generally a range of options available to directors, but the options of directors dealing with insolvency issues can diminish as time goes by.
We regularly advise directors in relation to:
- Voluntary administrations;
- Liquidations; and
- Deed of company arrangement proposals;
- The “Safe Harbour” provisions of the Corporations Act.
- Negotiations with individual creditors.
Any form of insolvency administration is a very stressful time for a director of a company. Our firm has a vast amount of experience in advising directors in relation to insolvency administration. We offer expert guidance for large corporate groups of entities and small business insolvency on the Gold Coast and Brisbane.
We have the expertise to advise a director to ensure that he or she is compliant with all relevant laws and is acting in accordance with their duties as a director. It is essential that directors get the right insolvency advice early on so that they are acting in the interests of the company and the company’s creditors while winding down the affairs of insolvent companies.
Accordingly, if a director experiences any insolvency issues regarding a company or is concerned about the company potentially becoming insolvent, they should seek advice at the earliest possible opportunity to maximise their chances of a successful and commercial outcome for themselves and the creditors.
Rose Litigation Lawyers can offer expert insolvency advice on the Gold Coast and in Brisbane. Our firm has recently assisted directors of companies adversely affected by COVID-19 and provided prompt and sound advice regarding the recent law changes which affect directors of companies that may be insolvent.
Asset protection is an integral part of any business venture. A structure that is effective from an asset protection point of view should be considered at the outset and before any business is conducted. Unfortunately, most only decide to take steps to protect their assets when the business is at risk of insolvency, or there is a threat from creditors. It is essential that parties take proactive steps in respect of asset protection given the risks and potential personal liability of being involved in a business or corporate entity.
Acting for and Advising Insolvency Practitioners
Our firm regularly acts on behalf of insolvency practitioners in respect of the following:
- Preferential payment claims;
- Voidable transaction claims including uncommercial transactions and transfers to defeat creditors;
- PPSA disputes;
- Insolvent trading claims;
- Deeds of Company Arrangement proposals
- Advising liquidators on matters that arise during the external administration period;
- Lodging caveats over property and debt recovery; and
- Any other advice that liquidators may need in respect of the external administration of a corporate insolvency
Acting for and Advising Creditors
The insolvency of a company can be complex and difficult for a creditor to understand. It is important that the creditor obtain advice in respect of their position, and if necessary obtain advice in respect of lodging a formal proof of debt for issues concerning the insolvency administrations. In particular, creditors should obtain insolvency advice to ensure that any security interests that they may have are protected and enforceable against the company in liquidation or administration.
In the event that you require legal advice in respect of a creditor of a company that has gone into a form of insolvency administration, then we invite you to contact us. Our team of corporate insolvency lawyers at our Gold Coast and Brisbane offices can provide trusted insolvency advice and take steps to protect your interests.
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