When is a Company Insolvent?

19 Pages Posted: 24 Apr 2010 Last revised: 20 Sep 2010

See all articles by David S. Morrison

David S. Morrison

The University of Queensland - T.C. Beirne School of Law

Date Written: March 1, 2002

Abstract

This article considers the meaning of the terms “solvent” and “insolvent” in Australia using the s 588G Corporations Act prohibition against insolvent trading by directors as an exemplar of the difficulties faced by those seeking to understand and apply the test provided for under the s 95A definition of “solvent” and “insolvent”. It is suggested that the Corporations Act definition adds little to the practitioner’s common law understanding of the terms.

Keywords: Solvency, insolvency, Corporations Act, Australia

JEL Classification: K22

Suggested Citation

Morrison, David S., When is a Company Insolvent? (March 1, 2002). Insolvency Law Journal, Vol. 10, March 2002, University of Queensland TC Beirne School of Law Research Paper No. 10-09, Available at SSRN: https://ssrn.com/abstract=1595085

David S. Morrison (Contact Author)

The University of Queensland - T.C. Beirne School of Law ( email )

The University of Queensland
St Lucia
4072 Brisbane, Queensland 4072
Australia

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