Star Recruitment Service Pty Ltd v Smith [2025] QSC 334 resulted in a director being held personally liable for over $1.1 million in insolvent trading debts – a stark reminder that while the COVID-19 safe harbour offered temporary respite, it was never a permanent shield.
You’re out of free articles for this month
For more than four years, insolvency practitioners have been debating the proper construction of section 588GAAA of the Corporations Act 2001 (Cth). The central question has been this: does the protection only apply if a company entered administration or liquidation during the safe harbour period, or does it extend to situations where the appointment occurred afterwards?
Justice Muir’s decision…