When we send out the annual ASIC review for companies, attached is a director’s resolution which the directors of the company sign, stating that the company is solvent and the company is able to pay its debts as they fall due.
Directors must carry out due diligence before signing the solvency resolution to satisfy themselves that the company is solvent, as trading insolvent is an offence under ASIC legislation.
If as a director you feel that your company may have a problem with solvency, please contact our office
This article appeared in our July 2016 newsletter.
