8 February 2010
Mr Adrian Furby
Insolvency Practitioners & Liquidators
Australian Securities & Investments Commission
GPO Box 9827
BRISBANE QLD 4001
Dear Mr Furby
Duty to prevent insolvent trading: Guide for Directors
The Group of 100 (G100) is an organization of chief financial officers from Australia's largest business enterprises with the purpose of advancing Australia's financial competitiveness.
The G100 is pleased to provide comments on the ASIC Consultation Paper 124 and considers that providing guidance for directors, particularly those involved with small and medium-sized companies, will assist them in performing their duties and understanding the expectations of the regulator.
The G100 provides the following general comments:
the paper refers variously to 'a director' and then
collectively to 'they' throughout. It is suggested that consistency is
required in clarifying the position of an individual and that of the Board
of Directors as a whole; and
the draft guidance is written in a directive style. If it is intended to provide guidance rather than state ASIC's views on what directors must do the tone of the expression should be changed. For example, in a number of cases the guidance states that the director must do something. This is giving a direction not guidance.
Group of 100 Inc