Practical Law ANZ Glossary w-018-6714 (Approx. 2 pages)
Glossary
Insolvent
For the purposes of the Companies Act 1993 (CA 1993), a company is insolvent if it cannot show that:
It is able to pay its debts as they fall due in the normal course of business ("cash flow" test).
The value of its assets is greater than the value of its liabilities, including liabilities that are contingent on the happening of a future event or events ("balance sheet" test).