insolvent trading

MIA Webinar – Red Alert: Directors’ Responsibilities in the Zone of Insolvency

Lee Shih1 Comment

I have been invited to speak as part of the Malaysian Institute of Accountants webinar series. My session is on Thursday 14 May 2020, 10.30am to 11.30am. It is titled ‘Red Alert: Directors’ Responsibilities in the Zone of Insolvency’.

I will cover the follow areas:

  • Directors’ duties when a company approaches insolvency.
  • The risk of insolvent and fraudulent trading.
  • The need to consider restructuring and winding up options.
  • Pros and cons of each option.

This is a free webinar but prior registration is required. Please email: [email protected] to register.

 

1MDB is Insolvent: Directors’ Liabilities for the Debts

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In a Media Release on 23 May 2018, Malaysia’s Ministry of Finance announced that it had met with 1MDB’s Board of Directors. The directors confirmed that 1MDB was insolvent and was unable to pay its debts. 1MDB’s debts may be in the region of RM42 billion. This figure is based on the declassified Auditor General Report  issued in 2015.

 

With this tremendous amount of debt, I touch on one aspect of directors’ liabilities. The directors and other officers of 1MDB, when allowing 1MDB to take on so much debt, can be held personally liable for these debts. Continue reading →