When is a Company Insolvent?
Insolvency Law Journal, Vol. 10, March 2002
University of Queensland TC Beirne School of Law Research Paper No. 10-09
19 Pages Posted: 24 Apr 2010 Last revised: 20 Sep 2010
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: Suggested Citation