But your company
may already be insolvent.

What every director must understand

Six things standing between you and personal liability.

• 01The moment you accept a directorship, you are personally responsible for keeping that company solvent — paying every bill, every obligation, every time.
• 02Every year thousands of Australian companies are forced to close. The current economic environment makes insolvency risk higher than it has been for a decade.
• 03ASIC RG 217 and Section 588G impose direct personal liability on every director who allows a company to trade while insolvent. The courts do not accept "I relied on management's reports" as a defence.
• 04To prevent a cashflow crisis you need to know how much cashflow the business requires — a number almost never reported to the board. When you ask, management will likely push back.
• 05You need to analyse past results and forecast future cashflow requirements — managing the fundamental picture of all cash IN equal to or greater than all cash OUT. This is a safe harbour requirement.
• 06BoardSolvency is the tool that gives every director the knowledge, the ratios and the living forecast to govern with confidence — before the crisis, not after.

The Fairbairn Formula

The single most important fact in any business.

Profit is an accounting opinion. Cash is a fact. The directors who survive — and the boards that protect their companies through downturns, credit crises and unforeseen events — share one discipline in common. They understand cash. Not profit. Cash.

The BoardSolvency Platform

Six modules. One clear picture of solvency.

You do not need to be a financial expert. You need to understand six things — and BoardSolvency teaches all of them.

Take these into your next board meeting

Five questions that will change the conversation.

Ask them out loud. Watch what happens. Aggressive management teams will resist. That resistance is your signal that the answers matter.

• "What is our Debt Service Coverage Ratio today, and what will it be in twelve months?"
• "What revenue level must we achieve every month to cover every financial obligation — including all loan repayments and tax provisions?"
• "If revenue dropped 20% tomorrow, how many months of cash do we have?"
• "What are our ATO obligations on the balance sheet, and when are they due?"
• "Does our three-year forecast model our debt repayment schedule in full?"

BoardSolvency gives you the knowledge, the language and the documented evidence to ask them — and to understand the answers.