The Federal Court’s recent decision in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) [2024] FCA 164 demonstrates the analysis the courts will undertake in determining a director’s personal liability for insolvent trading, even when the director does not appear for the hearing. The case reiterates how crucial it is for directors to maintain adequate books and records of the company and to comply with ATO reporting and payment requirements.
Background
The defendant was the sole director of RIC Admin Pty Ltd (in liq) (Company), a construction consulting service company providing administrative services. From the Company’s registration for GST on 1 January 2017 until its winding up on 13 November 2019…
Read the full article at: https://www.landers.com.au/legal-insights-news/decision-on-directors-liability-for-insolvent-trading-reiterates-importance-of-recordkeeping-compliance
