This report examines corporate insolvency in Australia, focusing on the legal framework, director's responsibilities, and the role of the Australian Securities & Investment Commission (ASIC). The report begins by defining solvency and insolvency, outlining warning signs of insolvency, and the required actions of company directors. It then delves into the potential liabilities of directors when a company becomes insolvent. The report explores different avenues available to directors and companies facing insolvency, including voluntary administration, liquidation, and receivership, differentiating between voluntary and involuntary interventions. It also discusses outcomes other than winding up, such as Deeds of Company Arrangement (DOCA). Furthermore, the report provides statistics on insolvency in Australian companies and analyzes the role of ASIC and other statutory authorities in handling insolvent companies. The report concludes with a summary of the key findings and relevant references.
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