Anyone know what potential penalties apply to a company that trades whilst insolvent?
Also who is legally responsible and I guess potentially culpable in such a case? Directors? CEO? CFO? Auditors?
There are no penalties for the company itself. It already owes more money than it has.
Directors can be fined (or imprisoned in extreme circumstances) and made personally liable for the debts of the company. CEOs are almost always directors. Even if they aren't directors by name the Corporations Act will make them directors by implication.
Auditors could potentially be sued for negligence or fraud.
*Not legal advice*