Services offered by MCR Partners Pty Ltd, which holds an Australian Credit Licence 531570.

Insolvent Trading & Director Liability

Director Personal Liability Protection — Expert Guidance

Under the Corporations Act 2001, directors have a duty to prevent their company from incurring debts when it is insolvent or likely to become insolvent. A director who allows a company to trade while insolvent may be personally liable for the debts incurred during that period — including compensation claims from creditors and liquidators.

If you are a director of a company that is experiencing financial difficulty, expert guidance may help you understand your obligations, assess your exposure to insolvent trading liability, and determine what steps may be taken to reduce personal risk.

Free consultation. No upfront fees.

Serving businesses across Australia.

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Confidential Case Review

Director Personal Liability Assessment

No Upfront Fees

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Situations Where Expert Advice May Be Required

Insolvent Trading & Director Liability Options

⚠️ Company Showing Signs of Insolvency
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The company is unable to pay debts as they fall due, raising questions about continued trading.

👔 Director Duty Assessment
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Understanding when the duty to prevent insolvent trading is triggered and what obligations apply.

🔒 Safe Harbour Protection
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Accessing the safe harbour defence by developing a restructuring plan that is reasonably likely to produce a better outcome.

⚖️ Liquidator Claims Against Directors
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Responding to insolvent trading claims made by a liquidator against directors of a wound-up company.

🏢 Voluntary Administration as a Defence
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Appointing a voluntary administrator may reduce ongoing director liability exposure for insolvent trading.

📋 Director Records & Documentation
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Maintaining proper records of decisions made during financial distress to support a defence if required.

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Directors who continue trading while insolvent may face personal liability for company debts — early advice is critical.

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⚠️ When Directors Seek Expert Advice

Situations That May Require an Urgent Review

The company cannot pay its debts as and when they fall due

Directors are unsure whether continued trading is lawful

A liquidator has been appointed and is investigating director conduct

A claim for insolvent trading compensation has been received

Directors want to understand their personal exposure and available defences


A professional consultation may help directors understand their liability exposure and the options available to reduce personal risk.

4.9 / 5.0 Rating. Proven Track Record

No Surprises, Just Results

Reduce your Tax Debt by up to 70%

Through a transparent Legislated Government Program within 3 months. On average, we save more than 70% of the total tax debt amount.

20+ Years Experience

Work with registered practitioners who have years of experience handling ATO issues, creditor disputes, and formal restructuring processes.

Urgent Help When It Matters

ATO deadlines and creditor demands don't wait. Get urgent advice when your business needs it most.

Broad Restructuring Guidance

For businesses facing ATO debt, DPNs, statutory demands, creditor pressure, cash flow issues, insolvency risk, and restructuring options such as voluntary administration and DOCA.

Dedicated Practitioners

Speak with a licensed professional about ATO debt, creditor pressure, and practical next steps for business restructuring.

Trusted by Businesses

Helped hundreds of companies navigate financial distress, ATO pressure, statutory demands and restructuring with clarity and confidence.

Transparent Legal Process

The Small Business Restructuring (SBR) program is a Legislated Government Program. We explain every step in plain English so you always know what’s happening.

📞 What Happens After You Submit

Clear guidance. No pressure.

Intake team reviews your submitted director and company information

Practitioner evaluates insolvent trading exposure and available defences

Follow-up may occur to gather additional documentation

Options are explained clearly

You decide how to proceed — no obligation


Free consultation. Confidential review.

Concerned About Insolvent Trading Liability?

Understand Your Obligations and Your Options

Free consultation. No upfront fees.

Reviews

Real Stories From Clients We’ve Helped

Labour Hire Contracting (saved $90,250)

The team made it easy. Reducing the tax made things a little easier and elevated the stress off our shoulders. Fantastic team. I'd recommend them to any and every one that I know.

Labour Hire Contracting Director, $90,250 reduction through SBR

Cafe & Hospitality (saved $152,071)

Company tax obligations in the food industry kept building due to Covid. We didn't know how to stop it. After the process it was reduced, we paid off the agreed amount, cash flow improved, and we're still trading with a great business now. Very simple, well-managed and easy. I've already recommended it to others.

Cafe & Hospitality Director, $152,071 reduction through SBR

Concrete Construction (saved $331,404)

Company tax debt due to covid and non-compliant payment plans with the ATO. We didn't know how to stop the pressure building. Working with the team gave us better cash flow and healthier money management — continuing to trade has been absolutely life-changing. Very easy, a lot easier than anticipated. Extremely happy with the whole team.

Concrete Construction Director, $331,404 reduction through SBR

Retail & Tutoring (saved $330,000)

Company tax obligation due to covid and related issues. We were really trying to find a solution to get on top of it but didn't know where to start. After the SBR process the company tax debt was reduced, stress dropped, we had an appropriate plan, and we were able to continue to trade. Very fast, efficient, very easy. I would definitely recommend it.

Retail & Tutoring Business Owner, $330,000 reduction through SBR