For insolvency purposes, a contract debt is payable at the time stipulated in the contract unless there is evidence of an express or implied agreement for extension, an estoppel, or a well-established industry course of conduct; the mere fact that creditors have not enforced payment does not convert debts into debts payable only on demand. A wife who accepts appointment as a director at her husband's request, with no understanding of directorial duties and in reliance on trust and confidence in the marital relationship, may establish a 'good reason' for non-participation in management under s 588H(4) and s 588FGB(5). The 'good reason' defence is not limited to illness but extends to any reason the law holds sufficient to excuse a person from the legal consequences of their acts or omissions.
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