Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588g
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588G
Character Range: 2033814–2034971

588G  Director's duty to prevent insolvent trading by company
 (1) This section applies if:
 (a) a person is a director of a company at the time when the company incurs a debt; and
 (b) the company is insolvent at that time, or becomes insolvent by incurring that debt, or by incurring at that time debts including that debt; and
 (c) at that time, there are reasonable grounds for suspecting that the company is insolvent, or would so become insolvent, as the case may be; and
 (d) that time is at or after the commencement of this Act.
 (1A) For the purposes of this section, if a company takes action set out in column 2 of the following table, it incurs a debt at the time set out in column 3.

When debts are incurred                                                                                                                                                                                          [operative table]
                         Action of company                                                                                                                                                                       When debt is incurred