AICD submission to ASIC on consultation paper 124 Duty to Prevent Insolvent Trading Guide f

AICD argues in this submission that the proposed guide has a useful educative purpose but that its limitations should be clearly acknowledged including that it does not represent the law or judicial interpretation. The guide fails to acknowledge at a number of levels the difference between the roles and responsibilities of directors and managements. This means that material changes must be made to the guide which address such matters as what information is properly available to directors and when they may consider taking expert advice in cases of suspected insolvency.

ASIC Consultation Paper 124 Duty to Prevent Insolvent Trading