On 6 December 2024, ASIC released its updated Regulatory Guide RG 217 ‘Duty to prevent insolvent trading: Guide for directors’ (RG 217). The updated guidelines replace the previous version which was released in August 2020.
Most notably, RG 217 now contains detailed guidance from ASIC on how directors may be able to protect themselves from civil liability for insolvent trading by establishing a ‘safe harbour’ in accordance with section 588GA of the Corporations Act 2001 (Cth) (Corporations Act).
Other notable changes to RG 217 include:
- Guidance from ASIC on when a holding company may be liable for insolvent trading by a subsidiary (including the circumstances in which a holding company will not be liable by reason of…
