Administration
Administration is an insolvency procedure that involves either Voluntary Administration or a Deed of Company Arrangement. Administration is used regularly by companies experiencing financial distress, largely because directors are required to take steps to avoid trading while insolvent..
If a Director continues to trade while the company is insolvent; and incurs liabilities during that period, the director maybe personally liable.
It is a criminal offence (if dishonesty is evident) to knowingly incur debts while insolvent, with the maximum criminal penalty being up to five years in jail and a fine of up to $220,000. If your company is heading towards administration, contact us immediately to discuss options and strategies.
Didn’t find what you were looking for?
Speak to our professional team on 1300 788 788 for IMMEDIATE solutions for your business.
Enquire online now.
Express contact