This assignment is a study of company directors within the specific context of company insolvency....

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This assignment is a study of company directors within the specific context of company insolvency. The essay requires students to provide a written discussion as to the following issues: 1. What are the signs that a company is insolvent, and what actions and proactivity are required of the directors in these circumstances? 2. What are the potential liabilities of company directors in the event of a company becoming insolvent? 3. What are the different avenues available to the company, in particular to the directors, if the company is presumed to be insolvent? 4. What is the difference between voluntary and involuntary interventions by different parties concerned by the potential insolvency of the company? 5. What might be a good outcome for a company other than being wound up by the creditors, and how might this be achieved? 6. What is the statistics on insolvency regarding Australian companies? 7. Are there any topical issues regarding insolvency of Australian companies? 8. What is the role of ASIC and any other statutory authorities regarding an insolvent company? 9. Make any appropriate observations regarding insolvency you believe might be relevant as a result of your reading and research.  You must refer to any real life situation/s (i.e. case/s) in your essay.    ONLY question no. 7&8  500 words due tmr 9pm

Robert · Accepted Answer

Running Head: CORPORATION LAWS   1 

Corporations law of Australia
Running Head: CORPORATION LAWS   2 
 
Answer 7: Topical Issues  
The statutory bodies and Corporation Law 2001 of Australia are facilitating the 
organizations to address the issues of insolvency and report of ASIC for statistical data 
related to insolvency also proved it. But, it can be stated that, for instance, the rising number 
of external management for the organizations to address the issues of insolvency also focuses 
towards some topical issues that are not effectively covered or addressed by the business laws 
of Australia (Keay, 2007). Some of topical issues in regard of insolvency of Australian 
companies are emerging due to the changes in the scenario of corporate world. Present 
business scenarios are altering because of the global financial crisis that does not only affect 
the profitability of the organizations but also affect survival of businesses (Keay, 2007). Due 
to this reason, various organizations are being bankrupt or facing critical financial crisis 
because of the overdue of debt.

This assignment is a study of company directors within the specific context of company insolvency. The essay requires students to provide a written discussion as to the following issues: 1. What are...

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