Should directors be pursued for insolvent trading where a company has entered into a deed of company arrangement?

Anderson, Colin and Morrison, David (2005) Should directors be pursued for insolvent trading where a company has entered into a deed of company arrangement? Insolvency Law Journal, 13 (3). pp. 163-172. ISSN 1039-3293

Abstract

This article examines the tension in Australia between the insolvent trading prohibition and the voluntary administration regime provided for in the Corporations Act. The tension exists since the former seeks to prosecute directors for incurring debts that the company cannot pay whereas the latter provisions seek to allow a company in financial distress to resolve the means of dealing with financial difficulty with its creditors and move forward on an agreed basis. The case of John Elliott is the first case in Australian corporate law history concerning the relevant provisions where an agreement was made with creditors, after which the director was prosecuted pursuant to the insolvent trading prohibition.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: (c) 2003 Lawbook Co t/a Thomson Legal & Regulatory Limited.' Any commercial use of this article or any copy or material portion of the article is strictly prohibited. For commercial use, permission can be obtained from Lawbook Co, Thomson Legal & Regulatory Limited, PO Box 3502, Rozelle NSW 2039. www.thomson.com.au
Depositing User: epEditor USQ
Faculty / Department / School: Historic - Faculty of Business - Department of Law
Date Deposited: 11 Oct 2007 00:20
Last Modified: 14 Nov 2013 06:32
Fields of Research (FOR2008): 18 Law and Legal Studies > 1801 Law > 180109 Corporations and Associations Law
22 Philosophy and Religious Studies > 2201 Applied Ethics > 220102 Business Ethics
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
Socio-Economic Objective (SEO2008): E Expanding Knowledge > 97 Expanding Knowledge > 970118 Expanding Knowledge in Law and Legal Studies
URI: http://eprints.usq.edu.au/id/eprint/382

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