Solvency Health Check

RRI Advisory - Solvency Health Check

Under the Corporations Act, Directors have a positive obligation to ensure that their company does not trade and incur new debts whilst it is insolvent. The definition of insolvency is effectively when a company is unable to pay its debts as and when they are due and payable. There are two major tests of insolvency being the balance sheet test and cash flow test (also known as commercial reality test). Over the years, the Courts have generally favoured the use of the cash flow test and have developed a number of indicators of insolvency.

Our Solvency Health Check tool will provide you with a rating of your current level of risk that your company is insolvent, together with suggestions of what to do next.

Using our Solvency Health Check Tool, you will be guided through a short series of questions, which are centred around the indicators of insolvency.

*Disclaimer: The information contained in this questionnaire tool is of a general nature and is not intended to address the circumstances of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Appropriate professional advice must be obtained before acting on this information. To the extent permissible by law, RRI Advisory Pty Limited and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).