I hear Greggy is in a spot of bovver!!
http://www.asic.gov.au/asic/pdflib.nsf/L...$file/Insolvency_guide_for_directors.pdf
Consequences of insolvent trading
There are various penalties and consequences of insolvent trading, including
civil penalties, compensation proceedings and criminal charges.
The Corporations Act provides some statutory defences for directors. However,
directors may find it difficult to rely upon these if they have not taken steps
to keep themselves informed about the company’s financial position.
Civil penalties
Contravening the insolvent trading provisions of the Corporations Act can
result in civil penalties against directors, including pecuniary penalties of
up to $200,000.
Compensation proceedings
Compensation proceedings for amounts lost by creditors can be initiated by
ASIC, a liquidator or a creditor against a director personally. A compensation
order can be made in addition to civil penalties.
Compensation payments are potentially unlimited and could lead to the personal
bankruptcy of directors. The personal bankruptcy of a director disqualifies
that director from continuing as a director or managing a company.
Criminal charges
If dishonesty is found to be a factor in insolvent trading, a director may also
be subject to criminal charges (which can lead to a fine of up to $220,000 or
imprisonment for up to 5 years, or both). Being found guilty of the criminal
offence of insolvent trading will also lead to a director’s disqualification.
ASIC has successfully prosecuted directors for allowing companies to incur
debts when the company is insolvent, and has sought orders making directors
personally liable for company debts.
Oh........poor Greggy
Sniffle
Don't drop the soap Greggy, there'll are 3 gay Hells Angels lined
up behind you in the cell block shower.
Whoooooooooo Hoooooooooooo!!
