The Australian Financial Security Authority (AFSA), Australian Securities and Investments Commission (ASIC) and Australian Restructuring and Insolvency Turnaround Association (ARITA) have together released an updated guide explaining bankruptcy and liquidation and how they interact.
The guide was first released in 2017 and has been updated in July 2022. It provides guidance for directors of companies and other people in business to help them understand their rights and responsibilities when personal bankruptcy and corporate liquidation intersect. It also provides useful information for advisors regarding the potential consequences and options available if their client is a director and shareholder of a company in financial distress.
The guide also highlights the importance of seeking appropriate professional advice and acting on that advice.
To download the updated guide, visit our website
AFSA is responsible for managing the application of bankruptcy laws in Australia and ASIC is responsible for the regulation of Australia’s corporate insolvency system. Together with ARITA, the peak professional body for insolvency practitioners in Australia, development of the guide has drawn on the expertise of each organisation.