News - 10-164AD ASIC releases guidance on a director’s...

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10-164AD ASIC releases guidance on a director’s duty to prevent insolvent trading

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ASIC has today released regulatory guidance to assist directors to understand and comply with their duty under the Corporations Act 2001 (Corporations Act) to prevent insolvent trading.

‘ASIC first contemplated issuing guidance during the downturn in economic conditions when a rise in corporate insolvencies was expected. We thought that the market, including directors and their professional advisers, would benefit from clarification about the factors we consider when deciding to commence an investigation in relation to possible insolvent trading, and issued some proposals in November last year’, ASIC Commissioner, Michael Dwyer said.

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10-164AD ASIC releases guidance on a director’s duty to prevent insolvent trading

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