One of the key duties of a director under the Corporations Act is the duty to prevent insolvent trading under section 588G. 

 

Why is it critical that a director must not allow or participate in any board resolution allowing the company which he or she serves to trade while insolvent? 

If charged with breaching the duty under section 588G, what statutory defences can a director raise?

Answer rating: 100% (QA)

It is critical that a director must not allow or participate in any board resolution allowing the company to trade while insolvent because trading whi... View the full answer