In order to ascertain whether a company is insolvent for the purposes of section 588G(1), the test is whether the company's liabilities exceed its assets.

Question

Quizplus · Accepted Answer

The test for insolvency under section 588G(1) of the Corporations Act 2001 (Australia) is whether the company is unable to pay its debts as and when they become due and payable, not merely whether liabilities exceed assets.

In Order to Ascertain Whether a Company Is Insolvent for the Purposes