Section 588G(2) does not require ASIC to prove that a director failed to take a particular step which would have been effective to prevent the company from incurring the debt; the section imposes a positive duty on all directors, including non-executive directors, to prevent insolvent trading. Compensation orders under s.588J are available even where the company has entered into a deed of company arrangement and are not confined to liquidation. The [name withheld] principle does not apply to civil penalty proceedings under the Corporations Law.
The full text is available to signed-in members, including the 52 later cases that cite this judgment.
4 of the 52 citing cases carry a classified treatment. How each court treated it is available to signed-in members.