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Duty to Prevent Insolvent Trading
The economic downturn has brought insolvency issues to the forefront of the minds of corporate directors and they have to confront issues they had not foreseen during boom times.
The recent collapse of One Tel and Ansett highlight the impact of the provisions contained in the Corporations Act pertaining to insolvent trading and draw attention to the rights of liquidators and creditors in that regard.
What is insolvent trading?
Normally when a company is put into liquidation, there are significant debts left unpaid. …
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