By Chloe Howard of Matthews Folbigg Lawyers, a lawyer in our Insolvency, Restructuring and Debt Recovery Group
A company is presumed to be insolvent if it fails to keep proper financial records (section 588E(4) of the Corporations Act 2001 (Cth)).
But what if you have the records, but providing them might send you to gaol?
This issue was recently discussed in the matter of Substance Technologies Pty Ltd [2019] NSWSC 612.
In this matter, the director refused to respond to a liquidator’s repeated requests for the company’s financial records because he said the records might contain incriminating material. He couldn’t be certain but “would suspect there could well be.” (at [42]) [...]
