Industry magazine In The Black recently published an article by Lachlan Colqhoun on the dangers of trading while insolvent.
The article examines the rise of insolvencies in the construction sector. Shabnam Amirbeaggi gave her view on how such insolvencies come about and how they might be prevented. As a specialist in the SME area, Shabnam went on to express some reservation on the relatively new Safe Harbour legislation. The legislation was introduced in September 2017 and offered directors protection from insolvent trading exposure. However, the benefits flow more towards bigger business.
As the article concludes and as we at Crouch Amirbeaggi have often stated, one of the best courses of action, especially for small business, is to consult insolvency professionals. ASIC publish a registered liquidators list for this very purpose.