When a company becomes financially distressed, directors are often required to act quickly and decisively. However, directors may at the same time find themselves held back by the requirements of the Corporations Act 2001 (Cth) (the “Corporations Act”) or their company constitution.
Whilst it is not unusual for financially distressed companies to grapple with matters of corporate governance, issues present where these matters permeate the ability of directors to appoint a voluntary administrator, or call into question the validity of such an appointment. Critically, directors of financially distressed companies may be unable to assemble the necessary quorum to pass a resolution to appoint a…
