ASIC reminds Director’s Duties Still Apply Despite COVID-19
ASIC Commissioner Mr John Price has reminded Directors and other stakeholders faced with COVID-19 that the safe harbour granting temporary relief for financially distressed businesses (Insolvent Trading provisions) does not extend to relief from statutory and common law directors duties including:
- Section 180 – Care and diligence
- Section 181 – Act in good faith
- Section 182 – Not to improperly use position
- Section 183 – Not to improperly use information
- Section 588G - Not to trade whilst insolvent*
*debts incurred pre COVID-19
ASIC's publishment of the article can be found here
Directors should continue to act in the best interest of the company and more important understand the financial position of the company and its viability to continue to trade.
Seek advice early from a suitably qualified and independent advisor about the company’s financial affairs such as your accountant and solicitor.
How can we help
Should you wish to discuss your circumstances, please call Abdul Chambal on 0402 763 883, Bill Cotter on 0413 885 888 or Roland Robson on 0412 982 859.