In July 2010, the ASIC released RG217 - Duty to Prevent Insolvent Trading: Guide for Directors, which provides guidance to directors in their duties to prevent insolvent trading under the Corporations Act. More recently, the ASIC released a further Report outlining the findings of its National Insolvent Trading Program. Commencing in 2005, the purpose of the Program was to encourage directors to identify insolvency indicators and seek professional advice at an early stage. One of the key findings of this Report was that:

"A director is less likely to breach their duties under the Corporations Act (2001) if they take into account the following key principles in carrying out their role:

• maintain appropriate books and records;
• identify insolvency concerns and assess available options;
• seek professional advice; and
• act in a timely manner."

If you require any further information regarding this matter, please click here to organise a meeting with Mr Michael Jones or Mr Bruce Gleeson.