The Safe Harbour provisions in the Corporations Act which came into force 19 September 2017 provide a safe harbour for company Directors from civil liability for insolvent trading where the directors start developing one or more courses of action that are reasonably likely to provide a better outcome for the company than an immediate liquidation or administration. The Safe Harbour provisions protects Directors from insolvent trading liability arising from debts incurred directly or indirectly in connection with any such course of action.
This framework can prove to be very effective for some organisations and so there are merits in understanding what eligibility looks like as well as aspects that you need to consider before engaging a qualified lawyer and financial advisor.
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Disclaimer: This information is effective 8 April 2020 and is subject to change, depending on Government directives and announcements.
The information set out above is general guidance only and is not intended to be relied on as a substitute for legal advice. Liability limited by a scheme approved under Professional Standards Legislation.
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