i think it's all over, page-59

Brantley,

There are two streams of assesment.

One is (as you point out) Presumed Insolvency, that is, if these tests are true after such a period then XYZ Ltd is presumed to be insolvent.

The other is the Solvency Test - are the directors able to pay the bills as and when they fall due.

Interestingly, directors trading while the second test is false are personally liable for all debts(in Australia). They can trade in the period prior to presumed insolvency and (probably) avoid (successful) prosecution.

There has been some discussion of relaxing the solvency test to (for example) the UK test, where directors can trade while technically insolvent IF they can show they had a well founded view that they could trade out (or sell out).

My posts have absolutely focused on the Solvency Test, ie is there enough cash to pay operating and interest.

Fllws