Good Evening Donnie,It is my understanding that directors can...

Good Evening Donnie,

It is my understanding that directors can indeed be held personally liable for losses suffered by creditors owners of a company if they were caused by breaches of the corporations act.
To date it appears the liquidator has assessed the directors liability attributed to this category to the tune of circa $13m. This was an initial estimate assessed swiftly only within 2 weeks due to Directors insurance expiring within that time. Investigations are ongoing, and this amount can be revised as further findings are uncovered.

With regards to directors insurance, the liquidator mentions that it may not be valid, and I also know that insurance does not cover directors for acts of misconduct, so I think there is a high likelihood that Directors would need to defend themselves without the assistance of insurance. It appears the liquidator believes act of misconduct may have occurred, and he has in fact reported his findings to date to ASIC according to the report. Furthermore, ASIC has the ability to commence criminal proceedings against directors, on top of amounts they are liable for as deemed by the liquidator.
Given the findings of the liquidator to date, and the dollar values involved in this liquidation, I'd say this case would be high on ASICs radar.