Under Australian law, a director can be personally liable for debts of a company incurred while it is insolvent. While this may well be appropriate in terms of protecting creditors, it can mean that even if a company's major creditors are supportive of the company trading out of its difficulties, the directors, faced with the prospect of personal (and possibly criminal) liability, may choose to effectively initiate the winding up process by appointing an administrator to the company.
I haven't seen any hints from AG & co, wanting to appoint an administrator yet. The situation is not that dire
SGH Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
