From sladen.com.au: A creditor, Mr. Dean, obtained court permission to sue the director of My Solicitors, Mr. Klievens, for losses from insolvent trading, despite the absence of written consent from the company’s liquidator.

The court ruled in favour of Mr. Dean based on his status as the sole creditor and the liquidator’s lack of opposition to the proceedings.

The decision shows how creditors can take direct action against directors for insolvent trading after six months from a company’s liquidation, following specific notice provisions under the Corporations Act.