The Australian government helped businesses during the COVID-19 pandemic last year by temporarily suspending some business directors’ duties relating to insolvency risks. However, directors’ obligations have reverted to the standard insolvency liability regulations this year.
The government’s 2020 insolvency relief, a part of the Australian Coronavirus Economic Response Package Omnibus Bill, aimed to prevent insolvent trading and any associated personal liability for directors if the relevant debt was incurred in the ordinary course of business (section 588GAAA), according to legal firm Clyde & Co.
However, Gallagher warned that the government JobKeeper wage subsidy supporting businesses and employment last year ceased in March 2…
Read the full article at: https://www.insurancebusinessmag.com/au/news/professional-liability/gallagher-issues-warning-on-directors-liability-risks-post-covid19-relief-253200.aspx
Related Posts
