The government should consider extending the six-month moratorium protecting directors whose companies are trading while insolvent in order to safeguard smaller- to medium-sized businesses, a senior commercial disputes lawyer has warned.
Last month, the federal government enacted temporary measures to avoid unnecessary insolvencies and bankruptcies in light of the challenges COVID-19 poses, by providing a safety net for directors and businesses to help them operate during a temporary period of illiquidity.
Intended to run for six months, the changes grant directors temporary relief from the risk of personal liability for insolvent trading with respect to any debts incur…
Read the full article at: https://www.mybusiness.com.au/management/6887-government-told-to-safeguard-business-by-extending-insolvency-relief
