Regulatory Alerts2024-12-05 | RG-217RG 217 Duty to prevent insolvent trading: Guide for directors
The Australian Securities and Investments Commission issued this guide to assist directors and their professional advisers in understanding and complying with the duty under section 588G of the Corporations Act to prevent insolvent trading. It outlines key principles for identifying insolvency risks and provides specific guidance on utilizing the safe harbour protection from liability. The document also serves as a reference for registered liquidators and creditors regarding these statutory obligations.
Issued 6 December 2024
This guide is for directors and their professional advisers. It may also be of interest to registered liquidators and creditors.
The guide sets out key principles to help directors understand and comply with their duty under s588G of the Corporations Act to prevent insolvent trading. It also provides guidance on the use of the safe harbour protection from liability for insolvent trading.
Download RG 217 (PDF 613 KB)