Questions for Directors

A director is obliged to be constantly aware of the company’s financial position.
An understanding of the financial position of the company only at the time that a director signs off on the company’s financial statements is insufficient.

Does the director:

  • Have information at their disposal to regularly form the view that the company is solvent?
  • Monitor the financial affairs of the company and make sufficient inquiries into its financial affairs on a regular basis?
  • Rely on a third party to provide information about the solvency of the company and, if so, does the director make diligent and timely inquiries of them?
  • Understand the indicators of insolvency that a reasonable person should take into account in determining whether the company is insolvent?
  • Take positive steps to confirm the company’s financial position and realistically assess the options available to deal with any of the company’s financial difficulties?

Is the company:

  • Continually making losses?
  • Unable to realise current assets and facing cash flow difficulties?
  • Not paying creditors in accordance with its terms?
  • Not paying tax and superannuation liabilities?
  • Subject to accumulating debt with excess liabilities over assets?
  • Defaulting on loan or interest payments?
  • Subject to increased monitoring and/o rinvolvement by its financier?
  • Experiencing difficulties in obtaining finance?
  • Entering into instalment arrangements to repay creditors including the ATO?
  • Subject to judgement debts?
  • Disorganised in its internal accounting procedures?
  • Deficient in financial records?
  • Losing key management personnel?

Corporate Insolvency

DW Advisory offers the full range of corporate insolvency services to assist companies facing cashflow difficulties and mounting debts that cannot be adequately addressed without the protection and process of a formal insolvency appointment.

Choosing the right option, at the right time, can be imperative to the survival of the business, or, where that is not possible, maximising the return for the company’s creditors.

Seeking early advice will reduce the risk of personal liability for the company’s directors. Our significant experience and expertise will assist greatly in achieving the best available outcome.

For more information, please click on the link below to contact one of our advisors.

02 9234 0444