LAW-0003 · grok-4.3 (default)**response.md**
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(a) Controlling Act: Corporations Act 2001 (Cth).
(b) Directors' duties provisions engaged:
- s 180 – duty of care and diligence: continuing to trade and incur credit when objectively aware of insolvency.
- s 181 – duty to act in good faith in the company's best interests: trading while insolvent and diverting opportunities.
- s 182 – duty not to improperly use position: diverting a profitable customer contract to the director's other company.
(c) Insolvent trading provision engaged: s 588G – a director must not allow the company to incur a debt when the company is insolvent (or becomes insolvent by incurring the debt) and there are reasonable grounds for suspecting insolvency.
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