In an article first published in ARITA News, the Australian Securities and Investments Commission outlined its increased focus on helping small business directors recognize financial warning signs, understand their obligations and seek professional advice before restructuring or other options narrow. ASIC is developing practical roadmaps, online learning modules and targeted guidance covering key decisions when starting, operating, restructuring or closing a company. ASIC reiterated that directors should actively monitor solvency, investigate financial difficulties, obtain suitable professional advice and act promptly, consistent with its existing guidance on the duty to prevent insolvent trading and access to safe harbor protection. Directors should avoid incurring debts the company has no realistic basis to repay and relying on short-term fixes that do not address underlying problems, as delays can reduce asset value, harm creditors and employees, and increase directors’ personal exposure.
2026-08-25Australian Securities & Investments Commission
Australian Securities and Investments Commission outlines increased support for small business directors facing financial difficulty
The Australian Securities and Investments Commission is increasing practical support for small business directors facing financial difficulty through roadmaps, online learning modules and targeted guidance. It urged directors to monitor solvency, seek qualified advice early and avoid incurring debts the company cannot realistically repay.