Hall & Wilcox special counsel in commercial litigation Katherine Payne.
One of the earliest economic stability measures passed by the federal government to battle COVID-19 involved a new form of safe harbour, which provides directors with short-term relief from the insolvent trading provisions.
Temporary safe harbour joins the pre-existing safe harbour regime, which was introduced in 2017, and was just beginning to see regular use before the health crisis commenced. Both safe harbour options provide directors with an exemption from liability for insolvent trading, which can provide comfort for directors who need time to consider the companys position before developing a turnaround plan or pursuing formal insolvency options.
However,…
Read the full article at: https://www.smartcompany.com.au/business-advice/legal/two-safe-harbours-insolvent-trading-covid-19/
