Summary
On 23 March 2020, the Federal Parliament passed the Coronavirus Economic Response Package Omnibus Bill 2020 (the COVID Act).
The COVID Act received Royal Assent on 24 March 2020 which amended, amongst other things, the Corporations Act 2001, the Bankruptcy Act 1966 and the Bankruptcy Regulations 1996 to temporarily release directors from a risk of personal liability for insolvent trading, as well as increase the minimum amount and time-frame for both statutory demands and bankruptcy notices.
Directors’ liabilities
The COVID Act inserts section 588GAAA into the Corporations Act 2001 (the Act), “Safe Harbour—Temporary Relief in response to the Coronavirus”. Under this section a director…
