If your company cannot pay its debts (including tax and superannuation debts) as and when they fall due you should meet with Rodgers Reidy to discuss your options. Failure to take immediate action could result in your personal liability for some of these debts. It is important to understand that there are often many options available, including those that allow the company to continue to operate and, with the agreement of creditors avoid liquidation.

No. The sooner action is taken the more likely a positive result will be able to be achieved. If creditors are not able to be paid within terms they are more likely to be supportive if a decision to deal with the financial situation is taken as early as possible and before the company, and the position of its creditors, becomes more severe.

Yes. Having spoken with Rodgers Reidy you are not obligated to take any immediate action, however, you will be much better informed of your options and the likely costs and risks of those options.

Insolvent trading occurs when a company incurs debts when there are reasonable grounds to suspect that the company will not be able to pay its debts as and when they fall due. The directors of the company may be held personally liable for any unpaid debts incurred during the period that a company is insolvent. Note that the term ‘director’ in this instance may include persons other than those officially appointed as a director of the company.