The consequences for any director, their auditor or independent reviewer that do not understand their roles or responsibilities whilst a company is trading under insolvent circumstances are severe. Auditors and independent reviewers of companies have certain reporting duties whilst performing audits or independent reviews, especially where they are dealing with companies where the liabilities exceed the assets. It is of utmost importance that auditors, reviewers and their clients understand these reporting duties. The legislation governing all of these duties for directors and auditors are complex and there are many pitfalls. During this webinar I will be discussing all the relevant legislation that auditor’s, independent reviewers as well as their clients who are directors of companies should be aware of. Please join me on for this very informative webinar. We are also providing a link for your clients to attend this webinar. Please feel free to invite your clients to join the session.

• What is the meaning of factual insolvency? • Irregularities and factual insolvencies • What is the meaning of commercial solvency? • Under which circumstances can the Commission issue a notice to the company to cease business? • What are the duties of director’s whilst trading under insolvent circumstances? • What is the meaning of reckless trading? • When is a company financially distressed? • What is the meaning of intent to” defraud”? • What affect will a subordination agreement? • Subordination agreements and liquidation • Examining the subordination agreement by the auditor • Difference between a letter of comfort and a letter of support • Effect of the subordination agreement and other support on insolvency • Duties of an auditor and independent when a company is trading under insolvent circumstances • Reporting duty of the auditor of a company when a company is trading under insolvent circumstances • Reporting duty of the independent reviewer when a company is trading under insolvent circumstances • Reckless trading and the personal liability of directors • Standard of director’s conduct (meaning of fiduciary duty of a director) • What would constitute “reasonably diligent steps to be taken by a director when a company is financially distressed • When to apply for business rescue? • When to apply for liquidation? • Knowingly a party to prohibited conduct • Reasonable director test to be applied by a court • Defences available to directors • Application of the solvency and liquidity test • Delinquent directors • When could a director be held personally liable? • When could a director be charged with a criminal offence in terms of the companies Act • What are the consequences for auditors and independent reviewers of not fulfilling their reporting duties?

All directors of companies, prescribed officers, members of audit committees, their auditors or independent reviewers and all their staff who will be performing audits and independent reviews of companies.