Company directors are being warned the government's moratorium on insolvent trading laws cannot be used an excuse to keep unviable businesses running, load up on unsustainable debt or dodge paying worker entitlements.
Directors could still be sued by creditors or prosecuted by regulators if they breached other legal responsibilities or engaged in illegal "phoenix" activity, lawyers said.
Loading...
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
