The regulatory moment is here — and most directors don't know it yet.
ASIC updated Regulatory Guide 217 — Duty to Prevent Insolvent Trading in December 2024, significantly raising the bar on director solvency monitoring obligations. Directors must now actively and continuously monitor solvency — independently of management. Every board in Australia has heightened obligations. No dedicated tool exists to meet them. Until now.
One bad quarter. One missed payment. One board meeting where nobody asked the right question.
That's how directors end up personally liable. Section 588G of the Corporations Act carries civil penalties of $200,000+, criminal imprisonment of up to five years, and lifetime director disqualification. D&O insurance does not cover deliberate or reckless conduct.
Most directors have no independent tool to prove they were monitoring solvency. BoardSolvency changes that.
The problem
- Every director carries personal liability for insolvent trading — yet relies on management-prepared reports
- No independent, continuous solvency monitoring tool currently exists for Australian directors
- ASIC RG 217 December 2024 requires active monitoring — "I relied on management" is no longer a defence
- Without documentation, there is no safe harbour — and no defence in court
- Multi-entity boards have no consolidated solvency view across subsidiaries
The solution
- BoardSolvency provides independent, continuous solvency analysis direct to every director
- Built on the Fairbairn Formula — eight structured components aligned with RG 217 and s.588G
- Three-year historical analysis plus forward-looking forecast — the full solvency picture
- Documented audit trail of monitoring activity — the director's proof of compliance
- Supports single-entity and multi-subsidiary corporate structures
The Proprietary Methodology
The Fairbairn Formula — the analytical engine behind BoardSolvency
Developed over ten years of research and personal experience, the Fairbairn Formula translates a director's legal obligations under Section 588G and ASIC RG 217 into eight structured, measurable indicators — producing a single, board-ready solvency adequacy score.
The formula is freely available in the public domain. BoardSolvency is the platform that implements it automatically — removing manual calculation and making it accessible to every director regardless of their financial background.
Platform modules
Single company module
Full solvency analysis for a single operating entity. Three-year historical financials, continuous creditor obligation monitoring, cash flow forecasting, and scenario stress-testing.
Multi-company module
Consolidated solvency view across multiple subsidiaries. Directors managing complex group structures can assess the whole and the parts simultaneously.
Board reporting
Structured solvency reports formatted for board presentation — aligned to ASIC RG 217 safe harbour documentation requirements and ready for the board pack.
Director dashboard
Individual director login with role-based access. Each director maintains their own independent, documented audit trail of solvency monitoring activity.
The AICD — a potential strategic distribution partner
The Australian Institute of Company Directors has 53,000+ members — the largest community of professional directors in Australia. AICD members are exactly the directors BoardSolvency is built for: governance-literate, compliance-conscious, and personally exposed under RG 217.
A partnership with the AICD — whether as a recommended tool, a member benefit, or an integrated compliance resource — could give BoardSolvency access to the professional director community in Australia. BoardSolvency is seeking an introductory conversation to explore what form that partnership might take.
Member alignment
AICD members are the exact audience — governance-literate directors who understand their RG 217 obligations and are actively looking for compliance solutions.
Curriculum integration
The Fairbairn Formula could be embedded into AICD director education as a practical solvency monitoring framework — extending AICD's governance curriculum.
Regulatory positioning
A recommended tool for RG 217 compliance monitoring, endorsed through appropriate AICD channels, would carry significant value for the director community.
Commercial model
Member subscription, co-branded offering, or referral partnership — multiple commercial structures are available depending on AICD's preferred engagement model.
The market opportunity
Distribution
AICD (primary), CA ANZ, large accounting and law firms advising boards, ASX governance services, and D&O insurers seeking risk reduction tools.
Commercial model
SaaS subscription per company, per director, or per board. Tiered pricing for single-entity vs multi-subsidiary structures. Annual compliance renewal cycle. Pricing available on request.
Competitive position
No dedicated independent director solvency monitoring platform currently exists in Australia. Enterprise governance platforms (Diligent, Board Intelligence) do not provide this function. BoardSolvency is first to market.
Why this exists — the founder's story
BoardSolvency was not born in a boardroom. It was built from personal failure. Stephen Fairbairn experienced multiple business closures due to cash flow crises — including the closure of a promising startup during a severe economic downturn. The question that drove ten years of subsequent research was simple: what would have needed to be true for these businesses to survive?
The answer was never more revenue. It was always the same thing — sufficient cash coming in above all obligations, every trading period, with a buffer for the unexpected. From that question came the Fairbairn Formula, the Excel workbook prototype, and ultimately BoardSolvency — the first platform to implement the formula automatically for directors and boards across Australia.
The platform is now in alpha testing. ABN 54 510 691 643 registered. The domain boardsolvency.com.au is secured. The AICD introduction is being arranged through a warm contact. The regulatory window is open. The market is ready.
The regulatory window is open now.
BoardSolvency is seeking its first strategic partner — whether commercial, technical, distribution-focused, or regulatory. Every day without a tool like this is a day of personal exposure for every director in Australia.
Contact Stephen Fairbairnstephenfairbairn@aussiebb.com.au | Noosaville QLD | ABN 54 510 691 643