• Why us?
  • About
  • Our Services
  • Our clients
  • Knowledge Centre
  • Useful Links
  • Contact
Commercial Lawyers
  • Why us?
  • About
  • Our Services
  • Our clients
  • Knowledge Centre
  • Useful Links
  • Contact

Are you a director of an insolvent company?

31/1/2017

 
During difficult economic conditions it is important that all directors revisit their duties as directors and are aware of how the board should deal with the situation where a company is in financial difficulty and may be insolvent.

What is insolvency?
A company is deemed to be insolvent when it cannot pay its debts as and when they fall due. 

​The test sounds simple however its application involves a range of accounting and legal issues.  When determining a company’s solvency a Court will consider the overall financial circumstances as a matter of commercial reality.  Particular emphasis will be placed on a cash flow test, however, there are also a range of balance sheet factors including the ability to realise the value of assets and raise further funds, be it equity or debt.

Read More

    Topics

    All
    Bullying
    Business
    Business Structures
    Business Succession
    Commercial Leasing
    Contractors
    Copyright
    Debt Recovery
    Directors
    Directors Duties
    Dispute Resolution
    Employment
    Franchise
    Governance
    Guarantees And Indemnities
    Insolvent Trading
    Insurance
    Intellectual Property
    Leasing
    Litigation
    Mediation
    Meta Data
    Privacy
    Redundancy
    Sale Or Purchase Of Business
    Security Interests
    Shareholder Agreements
    Statutory Demands
    Terms Of Business
    Trade Marks
    Unfair Contracts

    Subscribe to Newsletter

Our Services

Commercial and Contracts
Corporate Governance
Dispute Resolution

Government & Regulatory
​
In-house legal services
Tender Response & Negotiation
​
Training

Company

About Us
Contact Us

Need to know

Terms of Use
Privacy Policy
Limitation of Liability
Picture
Picture
Picture
Gionis Legal & Advisory Pty Ltd © 2022
  • Why us?
  • About
  • Our Services
  • Our clients
  • Knowledge Centre
  • Useful Links
  • Contact