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Would you please answer the following question according to company and association law subject

Discuss how directors may be liable for insolvent trading under the Corporations Act 2001?

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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discuss how directors maybe liable for insolvent trading under the corporation act 2001

Would you please answer according to Company and association law subject (Bachelor of accounting )

What are the sources of directors’ duties? Why is it important to know from which source the duty arises?

Question 2: Partnerships

In 2008, Dan Baxter and Philip Jones set up a partnership totrade as organic greengrocers under the name Baxter and Co. Theyfrequently purchase organic produce from Yvonne Botica, an elderlyfarmer. Orders are usually made on the firm’s letterhead, which hasthe words ‘ D Baxter and P Jones, trading as Baxter & Co’printed in small type at the bottom.

On 31 August 2017, Philip retires from the partnership andceases working in the business. Philip’s name is removed from theletterhead but no other notice is given to customers or the publicabout Philip’s retirement. In October 2017, Dan orders and receives$10,000 worth of goods from Yvonne. However, before the bill ispaid Dan becomes insolvent. Yvonne decides to sue Philip as Dan’spartner.

Answer the following questions. Refer to relevant provisions(including subsections) in the Partnerships Act 1908 to supportyour answers. (a) Is Philip liable to Yvonne for the debt incurredby Dan? In addition to relevant legislation, refer to a case tosupport your answer.

(b) What steps should Philip have taken when he retired toensure he would not be liable for post-retirement partnershipdebts?

(c) Whether Philip could be liable for holding out toYvonne.

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