Ann: Response to Aware Letter, page-91

I agree with Robbos comments that you are wrong in your statement.

Also under the Corporations Act, if the company is insolvent (cannot meet its debts as and when they fall due for payment), AND the Directors, knowing the financial position of the company, allow it to trade at any time during this period, then they are legally liable and can be personally prosecuted by Statutory authorities.

This is something no Director wants and as such wise management would appoint VA'ers if they believe the company is currently insolvent or will soon be .

Part of a VA'ers function is to not only sort out the company's mess but I believe the VA'ers are required to report to ASIC as and when they believe the company became insolvent...as such it may be even before the Directors appointed the VA'ers ...this is therefore not a situation any wise Director would muck around with.