2020 was a hard year for many companies as COVID-19 forced them to drastically adapt the way that they conducted business or suspend operations completely. Many companies have been so affected by the pandemic that they have become insolvent – they are no longer able to keep up with the debts they need to pay. If your company was one of the unlucky majority who have been struggling to survive the pandemic, there are still several options to get your company back to trading at full capacity.
A company is considered insolvent when it is unable to pay its debts as and when they fall due and payable. Insolvency generally signals the end of a company’s life. By the point of insolvency, it is often too late, but if you keep a close eye on some early warning signs you might be able to prevent your company from going under.
The previous blog post talked about the powers directors hold to affect the company and in the words of Benjamin Parker in Spiderman, “with great power comes great responsibility.” Although directors have extensive powers, these powers are so that directors can adequately fulfill the host of duties and responsibilities required of them as directors. Failing to satisfy these duties can lead to significant personal liabilities and so it is important to be fully aware of what you as a company director are required to do and not do.
Company directors need to comply with several strict duties in relation to the companies they direct. To help directors perform these duties, they are given a number of powers and rights that enable them to competently (and ideally, profitably) direct their company. Three of the key powers/rights are discussed below.
The ‘Discrete Property List’ (‘DPL’) is a process introduced by the Federal Circuit Court designed to make family financial matters quicker and easier. The DPL aims to make family financial cases as efficient and cost-effective as possible. But how does it do this?