Corporate Law Notes – Insolvent Trading

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  • UniversityUniversity of Melbourne
  • AreaLaw
  • CourseBLAW 20001 Corporate Law
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80% Grade
  • Authoruninotes
  • Created2014
  • Pages6
  • Approved31 October 2014

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About these notes

Step by step information about how to answer a question relating to insolvent trading (in relation to the Corporations Act). Includes the relevant sections.


Step 1: Is the person a director at the time the debt was incurred?
Step 2: Determine insolvency
Step 3: Reasonable grounds?
If steps 1-3 apply, continue. If not, 588G does not apply.
Step 4:
588G(2) Contravention (not dishonest)
588G(3) Contravention (dishonest)


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