There is some useful advice that ASIC gives to directors. Seems that GCN directors had not read these highly relevant tips. Presumably the liquidator will consider some of them in recommendations to ASIC.
http://tinyurl.com/d8jfas3
Table 1: Signs that may indicate your company is at risk of insolvency
• ongoing losses
• poor cash flow
• absence of a business plan
• incomplete financial records or disorganised internal accounting procedures • lack of cash-flow forecasts and other budgets • increasing debt (liabilities greater than assets)
• problems selling stock or collecting debts
• unrecoverable loans to associated parties
• creditors unpaid outside usual terms
• solicitors’ letters, demands, summonses, judgements or warrants issued against your company
• suppliers placing your company on cash-on-delivery (COD) terms
• issuing post-dated cheques or dishonouring cheques
• special arrangements with selected creditors
• payments to creditors of rounded sums that are not reconcilable to specific invoices
• overdraft limit reached or defaults on loan or interest payments
• problems obtaining finance
• change of bank, lender or increased monitoring/involvement by financier
• inability to raise funds from shareholders
• overdue taxes and superannuation liabilities
• board disputes and director resignations, or loss of management personnel
• increased level of complaints or queries raised with suppliers
• an expectation that the ‘next’ big job/sale/contract will save the company
