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Badenoch Integrated Logging Pty Ltd v Bryant

(2021) 272 CLR 478
JurisdictionAustralia
CourtHigh Court of Australia
Year2021
StatusBinding authority

Summary

Directors incur personal liability under s.588G Corporations Act for insolvent trading where there are reasonable grounds to suspect insolvency at the time debts are incurred.

Key Principle

The HCA held that the insolvent trading provisions in s.588G of the Corporations Act impose personal liability on directors who fail to prevent the company from incurring debts when there are reasonable grounds to suspect insolvency.

Area of Law

insolvency

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Stubbings v Jams 2 Pty Ltd (2022) 276 CLR 233

HCA held that a creditor's statutory demand under s.459E Corporations Act cannot be set aside merely because the company disputes the debt; a genuine dispute on substantial grounds must be shown.

Vince v ASIC [2021] FCAFC 69

Director disqualification upheld where director failed to maintain adequate books and records, constituting misconduct in management of insolvent company.

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