Where a company's only source of funds is voluntary contributions from a director, the degree of commitment to continuing that support is the most important consideration in assessing solvency. A director's willingness to fund that is contingent on numerous commercial uncertainties and not backed by any enforceable obligation is insufficient to render the company solvent. A director who remains registered but claims to have ceased involvement in management cannot establish the s 588H(4) defence without proving both actual non-participation and a good reason for it, and a failure to participate in management while remaining a director cannot constitute a 'good reason'.
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