Significant reforms to corporate and personal insolvency laws have divided opinion on safe harbour in Australia.
By Shabnam Amirbeaggi FCPA
Insolvent trading safe harbour reforms received royal assent on 19 September 2017. These amendments to the Corporations Act provide protection to company directors from liability for insolvent trading. The amendments apply to courses of action developed or taken before, at or after the commencement date, and to debts incurred on and from that date.
The safe harbor reforms
Prior to the change in law, a company director could be held liable for insolvent trading under section 588G(2) of the Corporations Act if:
- they were a director at the …
Read the full article at: https://www.intheblack.com/articles/2017/11/02/insolvency-safe-harbour-reforms
