A quantum meruit debt arising from building work performed in the absence of a formal contract is 'incurred' for the purposes of s 588G at the time the progress claim is made, not when the work is performed. A director who has practical ability to prevent the incurring of debts but fails to exercise that ability contravenes s 588G(2), even where the director is not the sole decision-maker. The existence of a shadow director whose conduct contributes to insolvency does not diminish the duties of other directors under s 588G.
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