ASIC Releases Regulatory Guide For Directors On The Duty To Prevent Insolvent Trading

A recent discussion paper posted by Hall & Wilcox on Mondaq sets out the four key principles directors should follow to meet their obligations to prevent insolvent trading as set out by Regulatory Guide 217.

As the article states:

 

“Directors should:

- keep themselves informed about the company's financial position and affairs;

- regularly assess the company's solvency and investigate financial difficulties immediately;

- obtain appropriate professional advice to help address the company's financial difficulties where necessary; and

- consider and act in a timely manner on the advice.”

 

Have readers had any experience with this new Regulatory Guide?