Insolvency for directors

For directors

Is my company in financial difficulty?

Signs that may indicate your company is in financial difficulty include ongoing losses, poor cashflow, unpaid creditors outside usual trading terms and problems obtaining finance. If you receive a director penalty notice from the Commissioner of Taxation for your company’s unpaid and unreported Pay As You Go (PAYG) withholding or Superannuation Guarantee Charge (SGC) amounts, you should immediately seek professional advice. Failure to take appropriate steps within 21 days may result in the Commissioner taking recovery action against you personally for an amount equivalent to the unpaid tax.

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What do I do if my company is in financial difficulty?

If you suspect your company is in financial difficulty, get proper accounting and legal advice as early as possible, as this increases the likelihood of the company surviving. Read more about what to do if your company is in financial difficulty

What if my company is insolvent?

If your company is insolvent, do not allow it to incur further debt. Unless it is possible to promptly restructure, refinance or obtain equity funding to recapitalise the company, generally your options are to appoint a voluntary administrator or a liquidator. The three most common insolvency procedures are voluntary administration, liquidation and receivership. Read more about what happens if your company is insolvent

What are my duties as a director?

If your company is insolvent, or there is a real risk of insolvency, your duties as a director are expanded to include the interests of creditors (including employees and other stakeholders). As well as general directors’ duties, you also have a duty to prevent your company trading if it is insolvent. Read more about directors' duties

What are the consequences of insolvent trading?

Insolvent trading can have serious consequences for directors. There are various penalties associated with insolvent trading, including civil penalties, compensation proceedings and criminal charges. Read more about the consequences of insolvent trading

How does an external administration affect me as a director?

There are a number of consequences for directors of a company that goes into external administration. These vary depending on the type of external administration. Read more how an external administration affects you as a director

What is my role in assisting an external administrator?

As a company officer, you must assist any external administrator (e.g. liquidator, receiver, administrator) who has been appointed to your company. You must provide a Report on Company Activities and Property (ROCAP), records, information and other assistance. Read more about your role in assisting an external administrator

Bankruptcy and personal insolvency agreements

What happens to you as a director, alternate director or secretary if you are bankrupt or subject to a Part X agreement? Read more about bankruptcy and personal insolvency agreements

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Information sheets and guides

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What's new

ASIC regulation of registered liquidators: July 2018 to June 2019                  

This report summarises the work undertaken and outcomes achieved by ASIC in supervising registered liquidators in the period from 1 July 2018 to 30 June 2019.

ASIC reports on corporate insolvencies 2018–19

ASIC has published its annual overview of corporate insolvencies for the 2018-19 financial year. 18 December 2019.

Report On Company Activities and Property (ROCAP)

After an extensive revision process and industry consultation conducted through an external consultant, ASIC has released the new ROCAP - Report On Company Activities and Property to replace the RATA. 


Industry funding

The Government has introduced new laws that change the way ASIC is funded. Regulated entities will receive an invoice for ASIC’s regulatory services delivered in the prior year. Find out what this means for registered liquidators.



Insolvency Law Reform Act 2016

Releases on insolvency

Liquidator registration applications

Registered liquidator disciplinary decisions

Insolvency statistics

AFSA - ARITA - ASIC joint liaison meetings


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ASIC Corporate Insolvency Update

Published notices

View insolvency and deregistration notices on the published notices website.

ASIC and registered liquidators

Last updated: 20/10/2014 12:00