RG 217
Duty to prevent insolvent trading: Guide for directors
Issued 6 December 2024. This guide is for directors and their professional advisers.
In plain English
This guide explains directors' duties to prevent insolvent trading and what steps they must take.
RG 217 is for directors and their professional advisors. It explains the duty to prevent insolvent trading. Directors must reasonably inquire into the company’s financial position. They must take action if there are concerns about insolvency. This guide was issued on 6 December 2024.
Why it matters
Directors need to understand their responsibilities. Failing to prevent insolvent trading can have serious consequences. This guide helps directors fulfil their legal obligations and protect the company.
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Issuing regulator
ASIC →Topics
Source: https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-217-duty-to-prevent-insolvent-trading-guide-for-directors/. Rules Mate indexes + summarises; always verify against the regulator's live publication.