Bankruptcy Advice from the Horse’s Mouth

Company directors and bankruptcy.

You cannot be a Director of a Company whilst bankrupt. Once you become bankrupt, you will need to advise the Australian Securities Investment Commission (ASIC), which can be done by completing and lodging with ASIC a Form 296 – Notification of Disqualification managing corporation – bankruptcy or personal insolvency agreement. If you have any questions … Read more

Does company liquidation cause the director to have to become bankrupt?

No, it should be assessed on a case-by-case basis. If the Director is unable to meet obligations in relation any personal guarantees, Director Penalty Notices and/or Australian Taxation Office debts it may be in the director’s best interests to become bankrupt to extinguish these debts. If you have any questions on bankruptcy, call 1300 060 … Read more