Director Personal Liability – An Overview

The term “Director Personal Liability” refers to a company debt a director has to pay as an individual. For example one of the questions our advisers are asked most commonly by directors of companies in financial distress is “Can my company’s creditors take my...

What is Safe Harbour Protection?

Safe Harbour legislation is a proposed insolvency Law Reform. Under the proposed Safe Harbour reforms, directors will not be personally liable for debts incurred after the date of insolvency (S588G Insolvent Trading) if they can show they were incurred in connection...

Directors Duties when facing insolvency

What does the law say? There are a lot of legal provisions that a director needs to consider in a situation where their company is possibly insolvent. We have provided below some of the relevant sections of the Corporations Act and other director’s duties that are...

Beware Company Credit Cards

Director and staff liability for company credit cards A sometimes overlooked personal liability for a director and their staff is in regard to company credit cards. Most credit cards are issued to individuals and, as a result, even if that credit card is usually paid...

Personal Guarantees by Directors

Can a liquidator help? What to do? One of the problems a director faces when the company is insolvent is the issue of personal guarantees. Unfortunately, there is no “magic pill” that can fix the problem. A personal guarantee is a specific agreement between a...