From www.insurancebusinessmag.com: ASIC warns that poor financial control and misuse of company funds by directors poses significant risks to small creditors, contributing to 36% of company failures in 2023-2024.

There are cases of directors misappropriating funds for personal use, leading to liquidations that leave small businesses unpaid.

The regulator reminds directors of their legal obligations to use company resources solely for business purposes, with potential civil and criminal penalties for misconduct.