Insolvency & Banking

Insolvency & Banking

When a company or an individual is unable to pay their debts when they become due and payable, they are said to be insolvent. It’s worth noting that in Australian law, there’s a distinction between bankruptcy, which relates to individuals, and insolvency, which pertains to businesses. Because a corporation does not have a soul to lose or a body to kick, it is regarded differently than individuals. The Banking Act of 1959 (Banking Act) prohibits financial institutions from using certain words and expressions associated with banking. These limits apply to any ‘financial business,’ defined as any business that involves or is related to the provision of financial services, even if it is not located in Australia.