{"id":228,"date":"2010-09-22T01:09:56","date_gmt":"2010-09-22T01:09:56","guid":{"rendered":"http:\/\/wp3.thomsonreuters.net.au\/journals\/?p=228"},"modified":"2010-09-22T01:09:56","modified_gmt":"2010-09-22T01:09:56","slug":"directors-liability-for-insolvent-trading-statutory-forgiveness-and-law-reform","status":"publish","type":"post","link":"https:\/\/sites.thomsonreuters.com.au\/journals\/2010\/09\/22\/directors-liability-for-insolvent-trading-statutory-forgiveness-and-law-reform\/","title":{"rendered":"Director\u00e2\u20ac\u2122s liability for insolvent trading, statutory forgiveness and law reform"},"content":{"rendered":"<p><strong><em>By Anil Hargovan*<\/em><\/strong><\/p>\n<p>The recent decision by the Federal Court in <em>McLellan, in the matter of The Stake Man Pty Ltd v Carroll <\/em>[2009] FCA 1415 (hereinafter <em>Stake Man<\/em>) excused a director from liability for insolvent trading based on statutory considerations concerning, inter alia, honesty and fairness under the <em>Corporations Act 2001 <\/em>(Cth). Significantly, this is the first case where a director has been fully exonerated from personal liability through the exercise of judicial discretion and follows the pragmatic decision in <em>Hall v Poolman <\/em>(2007) 215 FLR 243; [2007] NSWSC 1330 where a director was partially excused from insolvent trading liability through reliance on the same statutory provisions (ss 1317S and 1318).<\/p>\n<p>The full article can be accessed here: &#8220;Director\u00e2\u20ac\u2122s liability for insolvent trading, statutory forgiveness and law reform&#8221; <a href=\"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-content\/uploads\/sites\/3\/2010\/09\/InsolvLJ18.2_Recentdevts.pdf\">(2010) 18 Insolv LJ 96<\/a>.<\/p>\n<p>* Associate Professor,\u00c2\u00a0School of Business Law and Taxation, University of New South Wales.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Associate Professor Anil Hargovan The recent decision by the Federal Court in McLellan, in the matter of The Stake Man Pty Ltd v Carroll [2009] FCA 1415 (hereinafter Stake Man) excused a director from liability for insolvent trading based on statutory considerations concerning, inter alia, honesty and fairness under the Corporations Act 2001 (Cth).<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[18,28,19,29,30],"class_list":["post-228","post","type-post","status-publish","format-standard","hentry","category-insolvency-law-journal","tag-corporations-act","tag-directors-liability","tag-insolv-lj","tag-insolvent-trading","tag-stake-man"],"_links":{"self":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts\/228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/comments?post=228"}],"version-history":[{"count":0,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts\/228\/revisions"}],"wp:attachment":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/media?parent=228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/categories?post=228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/tags?post=228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}