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

[T0mmy]

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]

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.