The revised guidance was published by the Australian Securities and Investments Commission (ASIC) to help directors and their professional advisers better understand and comply with their duty to prevent insolvent trading, demonstrated through practical examples. It also provides further details on establishing the safe harbour defence against potential claims for insolvent trading, including the formulation and implementation of a “better outcome plan”.
Throughout the guidance, one of the prevailing themes and emphases is the importance of seeking advice from professional advisers, such as qualified lawyers and restructuring practitioners, when developing and implementing better outcome plans for their company and as a…