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

Article


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.
Article Title

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

ERA Journal ID37153
Article CategoryArticle
AuthorsAnderson, Colin (Author) and Morrison, David (Author)
Journal TitleInsolvency Law Journal
Journal Citation13 (3), pp. 163-172
Number of Pages10
Year2005
Place of PublicationSydney, Australia
ISSN1039-3293
Web Address (URL)http://www.thomson.com.au
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.

ANZSRC Field of Research 2020480103. Corporations and associations law
500102. Business ethics
350102. Auditing and accountability
Public Notes

(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

Byline AffiliationsDepartment of Law
University of Queensland
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