The shareholders of a company are liable for prosecution under the Corporations Act 2001 if they allow the company to trade while it is insolvent.

Question

Quizplus · Accepted Answer

Under the Corporations Act 2001, it is the directors of a company, not the shareholders, who are held responsible for allowing a company to trade while insolvent. Directors have a duty to prevent insolvent trading.

The Shareholders of a Company Are Liable for Prosecution Under