Statutory duty to prevent insolvent trading s588G This duty is only placed on directors (unlike duty of care). Does include s9 directors, shadow and de facto. s588G places a liability on directors that they may be personally liable for debts incurred. s588G is lifting the corporate veil and saying that 'we're recognising it's your decision that has incurred this debt, even though it's company's debt and we usually would sue company'

FOR THERE TO BE A BREACH

-director has to be director when company incurred debt

-company was insolvent or became insolvent because debt incurred

-at time debt was incurred there were reasonable grounds for suspecting insolvency

-director was aware of those grounds or reasonable person in like position would have been aware

	Created by Nafisa Zahra over 10 years ago

University Law of Business Entities Note on Busn2101 week 6 (2), created by Nafisa Zahra on 03/04/2014.