From worrells.net.au: Businesses facing financial difficulties might consider abandoning their company, but this can lead to serious consequences, including personal liability for directors due to Director Penalty Notices (DPNs) issued for unpaid taxes.

Abandoning a company may seem like an easy way out, but it can create long-term burdens and significant risks for directors.

Two cases highlighted the risks of deregistration, with directors needing to urgently reinstate their companies to comply with DPNs and avoid personal liability, which incurred additional legal and court costs.