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QLD Insolvency and Voluntary Administration - Are Parent Companies Liable to Pay Creditors?

Discussion in 'Commercial Law Forum' started by T0mmy, 26 January 2016.

  1. T0mmy

    T0mmy Member

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    I just wanted to know if a shell subsidiary company knowingly traded insolvent then went into voluntary administration, would the parent companies be required to pay out all creditors?

    Any help would be much appreciated.
     
  2. Paul Cott

    Paul Cott Well-Known Member

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    Hi Tommy,

    I would say no to your question, due to the separate legal entity principle, which does of course have exceptions.

    I would suggest, however, you receive your own independent legal advice as the area has a lot of complexities.
     

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