In the matter of Woodworx Joinery Holdings Ltd (in liquidation)

[2026] NSWSC 39

Supreme Court of NSW

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Interrogate

Catchwords

1. Corporations
2. › Directors' duties
3. › Insolvent trading
4. › Duty to prevent insolvent trading
5. › Whether company insolvent at time debts incurred
6. › Whether reasonable grounds to suspect insolvency
7. › Whether director aware of grounds for suspecting insolvency
8. › Corporations Act 2001 (Cth), ss 588G, 588M
1. Corporations
2. › Directors
3. › De facto director
4. › Whether person continued to act in position of director after formal resignation
5. › Indicia of de facto directorship
6. › Control of bank account
7. › Dealing with creditors
8. › Corporations Act 2001 (Cth), ss 9, 9AC
1. Corporations
2. › Insolvency
3. › Tests for insolvency
4. › Cash flow test
5. › Balance sheet test as context
6. › Indicia of insolvency
7. › Corporations Act 2001 (Cth), s 95A
1. Corporations
2. › Insolvency
3. › Presumption of insolvency
4. › Failure to keep financial records
5. › Whether presumption established
6. › Corporations Act 2001 (Cth), ss 286, 588E(4)

Quick Take

A liquidator's opinion that financial records are incomplete, without evidence of adequate inquiries to obtain records from persons other than the director (such as the company's accountants or other directors), is insufficient to establish the presumption of insolvency under s 588E(4) of the Corporations Act.