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

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T0mmy

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26 January 2016
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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.
 

Paul Cott

Well-Known Member
LawTap Verified
26 May 2014
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Ballarat, Victoria
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.

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.