In the case of Kim v JM World AU Pty Ltd (in liq) [2026] NSWCA 146, the NSW Court of Appeal upheld the trial judge’s finding against two directors for breach of directors’ duties in relation to, among other things, transfers of company funds to overseas related entities while the company was insolvent. Notably, the Court was split on the liability of one of the directors, who was entirely inactive throughout the entire process, the majority ultimately upholding the trial judge’s ruling against her.

When does a director cross the line? Re Empireal explores the fine line between legitimate crisis management and breach of duty as a director, helping directors and insolvency practitioners understand what it takes to stay on the right side of it.

On 6 December 2024, the Australian Securities & Investments Commission (ASIC) updated its Regulatory Guide: Duty to prevent insolvent trading: Guide for directors (RG 217).

The guide contains key principles intended to help directors comply with their duty to prevent insolvent trading and how to establish safe harbour protection through proactive monitoring and timely action.