The Law asks “Is the company insolvent?” If yes, then the directors must act immediately or they may be personally liable for debts that the company incurs after the date of insolvency. The Law provides a range of options to directors who suspect insolvency and they are designed to save a company. Insolvent Trading can attract harsh penalties – from disqualification from managing a company, to fines of up to $200,000, to even criminal charges. A liquidator has six years from the beginning of the liquidation to commence an action for insolvent trading. If you have received a letter from a liquidator saying you are personally liable under insolvent trading laws then it is a serious matter and you should immediately seek professional advice. So please make contact with us today, we’d love to help you find a solution.